Breaking: UK annualized inflation jumps to 11.1% in October vs.10.7% expected

• UK CPI accelerates by 11.1% YoY in October vs. 10.7% expected.

The UK annualized Consumer Prices Index (CPI) came in at 11.1% in October when compared to 10.1% recorded in September while beating estimates of a 10.7% figure, the UK Office for National Statistics (ONS) reported on Wednesday. The index surged to its highest level since 1982.

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Why UK inflation matters to traders?

The Bank of England (BOE) is tasked with keeping inflation, as measured by the headline Consumer Price Index (CPI) at around 2%, giving the monthly release its importance. An increase in inflation implies a quicker and sooner increase of interest rates or the reduction of bond-buying by the BOE, which means squeezing the supply of pounds. Conversely, a drop in the pace of price rises indicates looser monetary policy. A higher-than-expected result tends to be GBP bullish.