Inflation, which is the average cost of everyday household goods and services, went up by 0.6% in the year to August. The UK inflation rate was unchanged from July and missed forecasts of 0.7%.
Rising food prices and air fares pushed prices higher, according to the ONS, partly offset by cheaper prices for hotel rooms. The Pound dropped against USD and EUR around 0.2% as a result. The Euro’s gains were limited in light of the fact that the German ZEW economic sentiment came in much worse than expected at 0.5 from forecast 2.8. Any figure below 0.0 indicates pessimism so it barely makes the mark. Addressing an audience in Italy, Draghi said that the single market was one of the greatest achievements of European integration and should be protected at all costs.
Tomorrow we have unemployment, claimant count and average earnings figures from UK and NZD GDP tomorrow evening which is expected at 1.1%.
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