GBP/USD: UK Consumer Prices Index

The Sterling jumped against the US Dollar to the highest level since late 2016, as Tuesday reports showed strong growth in the UK consumer inflation. Following the release, the GBP/USD exchange rate surged 0.45% or 59 base points to the 1.3262 mark to reach the yearly peak.  

The Office for National Statistics announced that its CPI for Britain revealed stronger-than-expected growth of 2.9% in August, up from an increase of 2.6% in the preceding month. The country's consumer prices growth was the strongest since the decision to quit the European Union, as Brexit kept pushing up the living cost in the UK. Higher costs of fuels as well as strong rise in clothing and footwear prices contributed most to the growth, as retailers passed cost pressures straight to customers.