UK headline CPI rose 0.5% from a year ago - BBH

Research Team at BBH, notes that the slightly firmer than expected UK CPI did not impact interest rate expectations and did nothing for sterling, which was already trading with a heavier bias within the ranges of the past couple of sessions. 

Key Quotes

“The headline CPI rose 0.5% from a year ago.  Most expectations had been for a 0.4% increase after 0.3% in May.  A key factor was the 11% increase in airfare, which also helped lift the core rate to 1.4% (from 1.2%).  The data was mostly collected before the referendum and the Europe 2016 football may have been a distorting factor. 

Sterling reached a high yesterday, as the London markets were closing, near $1.3315.  Today's low was set in early European turnover just ahead of $1.3170.  The middle of that range, roughly $1.3240, may offer intraday resistance.”