Stocks quiet after inflation reports

Stocks quiet after inflation reports 150 150 Realm

Data from the Office for National Statistics (ONS) this morning shows that UK inflation in June rose more than expected and reached a three year high. The consumer price index rose to 2.5%, from 2.1% in May. That’s the second month it has been above the BoE’s 2% target and puts pressure on the central bank to raise interest rates.

Similar theme in the US with data released Tuesday showing inflation increased to 5.4% in June, its largest monthly gain since August 2008.

Asian markets were lower on Tuesday in response and UK and European markets had a lacklustre open this morning.

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