Current data from the UK headline consumer price index for the month of October 2023 showed that inflation in the United Kingdom of Great Britain and Northern Ireland fell sharply to 4.6% in October 2023 from 6.7% compared to the previous month, and the volume of the inflation rate thus reached a two-year low. However, these current facts have not yet been reflected in the forex trades of the foreign exchange market and the exchange value of the British pound (GBP) during the European morning of Wednesday 11/15/2023 shows a decrease against the US dollar (USD).
Currently, on Wednesday, November 15, 2023, during the European morning, at approximately 9:55 CET, the currency of the island European kingdom of Great Britain, the British pound (GBP) against the American dollar (USD), as the world’s reserve currency, traded in a mutual exchange rate exchange rate at 1.246 USD per GBP with GBP down by -0.264% against the USD on the day to date. The British pound (GBP) also weakened against the single European currency, the euro (EUR), on the indicated day and time, in the mutual exchange rate with the GBP falling by -0.16% against the EUR at an exchange value of 0.872 GBP per EUR. This exchange rate between GBP and EUR was achieved when the global currency pair of the single European currency Euro (EUR) and US dollar (USD) was trading at a rate of 1.086 USD per EUR with the EUR down by -0.211% on the day to date against the USD.
Thus, UK inflation has fallen more significantly according to the latest figures, and brokerage analysts and financial market strategists now expect UK inflation to be stagnant after reaching these numbers and further decline will be very imperceptible, but with the possibility of a resumption of an increase due to the state of the UK economy combined with the external influence of other world economies. The overall consumer price index stagnated month-on-month. Economists polled by Reuters had expected headline CPI to rise 4.8% year-on-year and 0.1% from the previous month. The core consumer price index – which excludes volatile food, energy, alcohol and tobacco prices – fell to 5.7% year-on-year in October from 6.1% in September. The biggest downward contribution came from housing and household services, the Office for National Statistics revealed, where the annual CPI rate hit the lowest since records began in January 1950.
Food and non-alcoholic beverages also contributed to the easing of inflation, the year-on-year rate of which fell to the lowest level since June 2022. The drop in inflation was welcome news for the so-called Downing Street, or the Prime Minister aka the Prime Minister of Great Britain, because it was Mr. Prime Minister Rishi Sunak who at the beginning of this year, in January 2023, he pledged to halve inflation in the United Kingdom, at a time when the annual CPI rate was above 10 percent. Suren Thiru, the ICAEW’s chief economic officer, said the steep decline suggested the UK had “turned a corner” in its fight against inflation, particularly given the fall in core CPI. According to him, however, the halving of inflation since the turn of the year is not related to government measures. “The Prime Minister has achieved his target of halving inflation this year, but more than any government action, this is due to downward pressure from falling energy prices and rising interest rates,” said Mr Thiru.