U.K. Consumer Price Index (MoM) For January -0.6% Vs. -0.3% Est.; 0.4% Prior
Portfolio Pulse from Benzinga Newsdesk
The U.K. Consumer Price Index (CPI) for January showed a decrease of 0.6%, which was more than the estimated decrease of 0.3% and a reversal from the prior month's increase of 0.4%.
February 14, 2024 | 7:01 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
The larger than expected decrease in the U.K. CPI may lead to a negative short-term impact on EWU as it reflects lower inflation, potentially signaling weaker economic activity.
The iShares MSCI United Kingdom ETF (EWU), which tracks the investment results of an index composed of U.K. equities, is likely to be negatively impacted in the short term by the unexpected drop in the CPI. This is because lower inflation than anticipated could be interpreted as a sign of weakening economic activity, which may reduce investor confidence in U.K.-based assets, including those held by EWU.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80