Breaking: UK annual CPI inflation steadies at 8.7% in May vs. 8.4% expected

• United Kingdom CPI increased 8.7% YoY in May vs. 8.4% expected.

more to come ...

Why does UK inflation matter to traders?

The Bank of England (BOE) is tasked with keeping inflation, as measured by the headline Consumer Price Index (CPI) at around 2%, giving the monthly release its importance. An increase in inflation implies a quicker and sooner increase in interest rates or the reduction of bond buying by the BOE, which means squeezing the supply of pounds. Conversely, a drop in the pace of price rises indicates looser monetary policy. A higher-than-expected result tends to be GBP bullish.