UK December CPI +5.4% vs +5.2% y/y expected

• Prior +5.1%
• Core CPI +4.2% vs +3.9% y/y expected
• Prior +4.0%

That’s the highest reading since March 1992 as UK inflation pressures continue to soar. The BOE will be meeting next on 3 February and given the circumstances, surely we will see a hike to the bank rate.

The pound is keeping steadier in light of the report, with cable holding around 1.3600-10 levels still for now.