Data from the Office for National Statistics (ONS) this morning shows that UK Consumer price inflation slowed to 2% (year-on-year) in July which is the Bank of England target. The fall from 2.5% in June was more than expected and is the first downtick since February.
Stocks had a fairly muted response with a number of other issues in the balance including the global spike in COVID-19 infections and its possible impact on economic recovery, a strong earnings season in US and Europe and events in Afghanistan.
Investors will be studying the minutes from the US Fed’s latest meeting, released today, looking for any clues that the view on inflation and tapering could be updating.
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