The Pound recorded a fresh one-year high against the US Dollar after the UK's inflation rate climbed to its joint highest in more than five years.
The Office for National Statistics reports headline CPI inflation for August read at 2.9% as the price of petrol and clothing rose, ahead of the 2.8% expected by economists and above the 2.4% recorded in July.
The rise in inflation comes as the ONS reports clothing and footwear inflation has reached a record of 4.6% because of rising import costs for retailers. The rebound in the price of oil also had a significant impact, pushing up fuel prices.
The bigger-than-expected rise in inflation comes ahead of the Bank of England's next announcement on interest rates on Thursday. However, Governor Mark Carney warned last month that the pressure on families would continue for the next few quarters. Households have seen their spending power diminish as wage growth tracks below inflation.
09:30 – GBP: Average Earnings Index 3m/y forecast to increase to 2.3%
13:30 – USD: Producer pricing index is expected to increase to 0.3%
13:30 – USD: Crude Oil Inventories