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.
Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’