The Pound strengthened yesterday after the UK’s inflation rate hit a four year high due to the rising cost of foreign package holidays and imported computer games.
Inflation pushed up to 2.9% last month from 2.7% in April, its highest recording since June 2013 and above the Bank of England's target. The Office for National Statistics (ONS) said the price of food and clothing also went up slightly but fuel costs fell again for the third month in a row.
The rising inflation has been driven by the fall in the value of the pound since last year's Brexit referendum has increased the cost of imports. The ONS again warned that wages have not kept up with the rise in prices.
Producer prices in the US were unchanged in May as energy costs recorded their biggest decline in more than a year, suggesting a moderation in inflation after a rise at the start of the year.
Inflation remains supported by the sustained increases in the cost of services as well as a softening dollar, which is lifting the prices of some imported goods.
09:30 – GBP – Average Earnings expected to remain at 2.4%
13:30 – USD – Consumer Pricing Index is expected to remain at 0.2%
13:30 – USD – Core Consumer Pricing Index is expected to remain at 0.2%
13:30 – USD – Core retail sales is forecast to decrease to 0.2%
13:30 – USD – Retail sales is forecast to decrease to 0.1%
19:00 – USD – FOMC economic projections
19:00 – USD – FOMC Statement
19:00 – USD – Federal Funds Rate
19:30 – USD – FOMC press conference