The UK Office for National Statistics (ONS) data released today showed the inflation did not rise as fast as expected mainly on account of a drop in bicycle prices. The headline CPI rose 0.2% m/m and 0.3% y/y, both missing the consensus estimates. Core inflation matched estimates by printing at 1.2% y/y. According to ONS, “the largest downward contribution came from the transport sector, from price changes for items such as road passenger transport, second-hand cars and bicycles. Rising food prices, particularly for vegetables, offset this.” For more information, read our latest forex news.