Breaking: UK annualized inflation unexpectedly eases to 9.9% in August vs. 10.2% expected

• UK CPI eases to 9.9% YoY in August vs. 10.2% expected.
• Monthly UK CPI arrives at 0.5% in August vs. 0.6% expected.
• GBP/USD falls towards 1.1500 on disappointing UK CPIs.

more to come ...

Why UK inflation matters to traders?

The Bank of England (BOE) is tasked with keeping inflation, as measured by the headline Consumer Price Index (CPI) at around 2%, giving the monthly release its importance. An increase in inflation implies a quicker and sooner increase of interest rates or the reduction of bond-buying by the BOE, which means squeezing the supply of pounds. Conversely, a drop in the pace of price rises indicates looser monetary policy. A higher-than-expected result tends to be GBP bullish.