UGBP - Food prices push inflation into double-digit jumps to forty-year high

• UK July Consumer Price Index :+0.6% M/M vs. vs. +0.4% consensus, +0.8% prior.
• +10.1% Y/Y vs. +9.8% consensus, +9.4% prior.

• Rising food prices made the largest upward contribution to the change in both the CPIH and CPI annual inflation rates between June and July 2022.

• Core CPI: +0.3% M/M vs. +0.2% consensus, +0.4% prior.
• +6.2% Y/Y vs. +5.9% consensus, +5.8% consensus.
• As expected, the Bank of England raised its benchmark interest rate by 50 basis points on Thursday to 1.75% from 1.25%, representing its largest hike in 27 years as it seeks to tamp down inflationary pressures. The Bank expects inflation to top out at 13.3% in October.
• Inflation data triggered 26 bps rise in British 2-year Gilt yields to 2.41%, highest point since November 2008.
• ETFs: FXB , EWU , FKU , EWUS , HEWU , DGBP , FLGB , UGBP

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