U.K. headline inflation likely to have accelerated further in October

Headline consumer price inflation in the U.K. had accelerated in the month of September to 3 percent, the highest since April 2012. The upward trend is expected to have continued in October. According to a Lloyds Bank report, the CPI is expected to have accelerated to 3.2 percent year-on-year in October.

Meanwhile, the labor market trends in 2017 have continued to indicate relatively muted wage growth, in spite of a further diminishing of labor market slack. Employment in the U.K. had risen by 94k in the three months to August, maintaining the jobless rate at a 42-year low of 4.3 percent, while headline pay growth is likely to continue to hover just above 2 percent, stated Lloyds Bank.

“Despite the resilience of hiring intentions from business activity surveys, job creation is likely to have slowed sharply in Q3 and we forecast a rise of just 10k. Moreover, pay growth is likely to remain subdued”, added Lloyds Bank.

At 20:00 GMT the FxWirePro's Hourly Strength Index of British Pound was bearish at -75.2912, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -17.7745. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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