UK inflation should ease | 28 6月 2023

28 6月 2023, GBP/USD

UK inflation should ease

GBPUSD trading plan:

Bank of England policymaker Swati Dhingra said there are promising signals for a further decline in British inflation, based largely on a steep fall in the rate of increase in prices which manufacturers charge to retailers. In a speech to Britain's Royal Economic Society, Dhingra highlighted a sharp drop in the annual rate of producer price inflation, which was 2.9% in May, its lowest in more than two years and down from a peak of 19.6% in July 2022. Other BoE policymakers have focused more on wages and core inflation, a measure which strips out food, energy, alcohol and tobacco prices and which rose to a 31-year high last month. One factor which could break the link between lower producer prices and falling inflation would be if businesses did not pass on lower prices, but Dhingra said there was little evidence of this so far in companies' published earnings statements.

Investment idea: sell 1.2764 and take profit 1.2700.

David Johnson
Analyst of «FreshForex» company
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