Commenting on UK CPI beating expectations, Mike Owens, Global Sales Trader at Saxo Markets, said: “A strong reading from UK CPI, +2.1% CPI YoY and the first time in almost two years the number has beaten the Bank of England’s 2% target. On its own, the CPU pickup reflects higher prices as the economy emerges from lockdown and therefore supports the central bank’s current view that the inflation surge will be temporary. Separately, Input data from the Producer Price Index recorded a +10.7% YoY rise in May showing clear pressure on prices of raw materials, fuel and transport pushing up the cost of goods for producers. This is pretty ominous and echo’s last week’s comments from Andy Haldane that further high street inflation can’t be far behind.”