The GBP/USD fell sharply to the lowest level in four weeks, as the Britain’s consumer price inflation report showed weaker than expected reading for July. The Pound retreated versus the US Dollar to the 1.2917 level, falling by 34 base points just after data were published.
The Office for National Statistics revealed that the UK Consumer Price Index marked a 2.6% yearly increase in July, equal to the previous month’s gain, while analysts expected a climb of 2.7%. The inflation growth was dampened by lower oil prices, while the main support came from rising costs of clothing, food and utilities. The weaker-than-expected CPI figure reduced expectations for a higher inflation as well as the prospect of the Bank of England’s interest rate hike.
