Upside surprises in UK inflation readings since May have been in core goods and food prices, Bank of England (BoE) Monetary Policy Committee member Catherine Mann noted on Monday, as reported by Reuters.

Additional takeaways

"UK output data and business surveys have remained positive since May's BoE forecasts."

"Services price inflation is also a concern for achieving 2% CPI target."

"Wage increases of 4% would be a challenge to returning CPI to 2%."

"UK inflation expectations remain too high."

"There's still a question in my mind how tight UK financial conditions really are."

"Drop in inflation expectations was important for me to switch my vote to 25 bps rate hike from 50 bps."

"Monetary policy is not good at fine-tuning, should focus on inflation."

"Inflation expectations are now on the down swing."

Market reaction

GBP/USD stays on the back foot following these comments and was last seen losing 0.45% on the day at 1.2510.