Sterling Shows Subdued Reaction to In-Line Inflation Data
Dow Jones
Yesterday
0645 GMT - Sterling is little moved after the latest U.K. inflation data came in line with expectations ahead of the Bank of England's policy decision Thursday. Annual headline inflation rose to 3.1% in August from 2.9%, as forecast by economists in a WSJ survey. However, core inflation remained at 2.6%, as anticipated. Inflation is accelerating but this is driven by higher energy prices while a soggy labor market is of greater concern, J.P. Morgan Asset Management's Zara Nokes says in a note. Hence, U.K. policymakers shouldn't feel under pressure to raise rates, she says. Sterling rises 0.1% to $1.3483, compared to $1.3491 before the data. The euro trades flat at 0.8563 pounds, versus 0.8559 before the data.
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