Here's a comment on the UK CPI release.
The latest inflation data has given the BoE a little more wiggle room after the CPI Y/Y for July showed a smaller than expected increase. The rise of 2.6% is lower than the consensus forecast for a 2.7% rise and inline with the prior print. Today’s number marks the second successive lower than expected reading for this widely viewed measure of inflation and the strong rise seen since the start of the year appears to have been halted. Even though the reading is significantly above the 2% target for the BoE the fact that it is below forecast will be pleasing to Governor Carney and the other members of the MPC and will allow the rate-setting committee a little more leeway when it comes to policy decisions going forward.
In terms of market reaction the pound has experienced a swift move lower with the GBPUSD falling some 40 pips since the release to trade at its lowest level in a month just above the 1.29 handle.