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Sterling jumps after data shows faster rise in UK inflation
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LONDON (Reuters) – Sterling jumped on Wednesday after data showed UK consumer inflation accelerated more quickly than forecast in October, helping support the view that the Bank of England will lower interest rates gradually in the coming months.
LONDON (Reuters) – Sterling jumped on Wednesday after data showed UK consumer inflation accelerated more quickly than forecast in October, helping support the view that the Bank of England will lower interest rates gradually in the coming months.
The pound was last up 0.23% on the day at $1.2711, having traded around $1.2688 prior to the data.
Against the euro the pound was up 0.26% at 88.385 pence to the common currency.
British inflation rose to an annual rate of 2.3% in October from 1.7% in September, official figures showed on Wednesday, compared with 2.2% forecast by a Reuters poll of economists.
(Reporting by Amanda Cooper; Editing by Alun John)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation to keep the economy running smoothly.
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, managing monetary policy, and maintaining financial stability.
A currency exchange rate is the value of one currency for the purpose of conversion to another. It indicates how much of one currency you need to spend to buy a unit of another currency.
Interest rates are the amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal. They influence economic activity and inflation.
Consumer inflation refers to the increase in prices that consumers pay for goods and services over time, often measured by the Consumer Price Index (CPI).
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