Today the Office for National Statistics has published September’s inflation report. In September the RPI hit 5.6%, which is a 20-year record. In August the RPI was equal to 5.2%.
September’s CPI grew up to 5.2% against the forecasts (4.9%), thus reaching the level of September 2008. The report says that higher prices on electricity and fuels are the key factors.
September’s Core CPI also exceeded the forecast by 0.1% (3,2% to3,3%) after 3,1% seen in August.
It should be noted that it is Core CPI that is frequently taken into account by the Bank of England when considering mid-term prospects.
FOREX.
According to the Department of Masterforex-V trading System, GBPUSD continued the downswing - wave A/B – after completing the previous upswing. The experts say that in order to have the current downswing completed the price will have to break the MF pivot 1,5785 and the MF sloping channel. Further on, an upward FZR will start another upswing – wave A(C ) or shortened C, with the closest resistance around 1,5851.A break below 1,5630 will initiate sub-wave C (C ) inside the mentioned bearish wave A/B.
