Investing.com - Consumer price inflation (CPI) in the U.K. unexpectedly eased in June, pulling back from a previous 4-year high official data showed on Tuesday.
In a report, the U.K. Office for National Statistics (ONS) said the rate of consumer price inflation (CPI) rose from the year before by a seasonally adjusted 2.6% last month. That was compared to forecasts for it to remain steady at 2.9% which had been the highest since June 2013.
The ONS noted that it was the first decrease in CPI since April 2016.
Month-over-month, consumer price inflation was unchanged in June, compared to forecasts for a 0.2% increase and the 0.3% gain registered in the previous month.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 2.4% last month, lower than forecasts for it to remain on hold at May’s reading of 2.6%.
The retail price index (RPI) increased by 3.5% in June, after rising by 3.7% the previous month. Analysts had expected inflation to ease to 3.6%.
Month-on-month, RPI increased by 0.2% in June, compared to a 0.4% advance in the prior month. Economists had forecast a 0.3% gain.
Core RPI increased at an annualized rate of 3.8% in June, in line with forecasts and compared to a 3.9% increase the previous month.
Month-on-month, core RPI increased 0.3% last month, compared to May’s 0.4% rise.
The data also showed that the house price index rose 4.7% in June, above forecasts for a gain of 3.2% and following a 5.3% increase a month earlier. May’s data was revised from an initial 5.6% rise.
The ONS indicated that falling prices for motor fuels and certain recreational and cultural goods and services were the main contributors to the fall in the rate.
“These downward contributions were partially offset by rising prices for furniture and furnishings,” the ONS said.
Following the report, GBP/USD traded at 1.3027 from around 1.3073 ahead of the release of the data, EUR/GBP was at 0.8845 from 0.8813 earlier and GBP/JPY changed hands at 146.31, compared to 146.85 previously.
Meanwhile, European stock markets traded with mixed signs. London’s FTSE 100 inched up 0.07%, the benchmark Euro Stoxx 50 lost 0.12%, France's CAC 40 edged forward 0.03%, while Germany's DAX fell 0.22%.