The British Pound received only temporary support from the UK data indicating the country’s inflation at the six-year high in November. The GBP/USD exchange rate rose 17 pips or 0.12%, but weakened rapidly and failed to sustain the position, continuing trading in the 1.3320 area.
Britain’s inflation accelerated growth pace unexpectedly, causing a tighter squeeze of household incomes. The Office for National Statistics stated that consumer inflation hit a yearly rate of 3.1% in November, driven by computer games, air fares and chocolate prices, reflecting the Sterling’s plunge after the Brexit vote. The current rate, being more than 1% above the BoE target, would force the Bank’s Governor to write a letter about further steps to the UK Finance Minister.
