Bank of England Monetary Policy Committee member Catherine Mann said on Wednesday that, going into 2022, it is less clear if companies will have less pricing power, so we think core goods inflation will moderate. 

Market Reaction

GBP/USD continues to push to fresh highs in the 1.3470s and EUR/GBP has recently fallen back under 0.8400. GBP has been performing well on Wednesday following strong UK Consumer Price Inflation (CPI) data which showed the YoY rate of CPI rising to 4.2% in October from 3.1% in September, a 10-year high.