The pound is still trading at strong levels against the euro and the dollar after a series of UK data releases this morning.
The inflation rate came in at 0.7% year-on-year in January, which was above market expectations of 0.6%. This was due to a rise in furniture and food prices. Economists predict that inflation could continue to rise, partly due to Brexit and the rise in global shipping costs amid the pandemic.
The retail price index also rose in January to 1.4% from 1.2% in December, the highest it’s been since July and above market forecasts.
Sterling continues to be supported by the UK’s vaccine rollout and the falling number of COVID-19 cases. Any further signs that the economy could open up soon may boost the pound further.
