This post was originally published on this site.EUROPEAN SESSION In the European session, the main highlight was the UK CPI report. The data came mostly in line with expectations, with a slight miss on Services CPI measure. For now, the BoE has enough reasons to keep rates steady and maintain a tightening bias given the soft employment data and limited inflation spillover. The market is pricing in around 80% chance of no change in rates at tomorrow’s meeting and a total of 45 bps of tigthening by year-end. The market is still betting on rate hikes due to elevated energy...

This post was originally published on this site. UK August CPI +3.1% vs +3.1% y/y expected Prior +2.9% UK August core CPI +2.6% vs +2.6% y/y expected Prior +2.6% The main readings are all within estimates, with UK headline inflation seen picking up again in August – jumping above 3% for the first time since March. Higher energy prices was the biggest contributor, amid an increase in prices for diesel and petrol. For some context, diesel prices rose by 14.2 pence per litre in August 2026, compared with a rise of 0.8 pence per litre in August 2025. Meanwhile, the...