The UK CPIs Overview

The cost of living in the UK as represented by the Consumer Price Index (CPI) for May month is due early on Wednesday at 06:00 GMT.

Given the recently released upbeat UK employment data, coupled with the hawkish concerns about the Bank of England’s (BOE) next moves, today’s British inflation numbers will be the key for the GBP/USD traders. Also increasing the importance of the UK CPI is the looming BoE Interest Rate Decision, on Thursday.

That said, the headline CPI inflation is expected to ease to 8.4% YoY in May, versus 8.7% prior. Further, the Core CPI, which excludes volatile food and energy items, is likely to remain unchanged at 6.8% YoY. Talking about the monthly figures, the CPI could ease to 0.5% versus 1.2% prior.

Also important to watch is the Retail Price Index (RPI) figures for May, expected to mark a reduction to 0.5% MoM and 11.2% YoY versus 1.5% and 11.4% priors in that order