Published:
Contributions to the 12-month rate of CPI(H) by import intensity: August 2026
ONS released a longer time series showing how different components contribute to CPIH and CPI inflation by import intensity, alongside data for the August 2026 period.
The Office for National Statistics published contributions to the 12-month rate of CPI(H) by import intensity for August 2026, alongside a longer time series covering both CPIH and CPI, the UK’s main consumer inflation measures.
The release focuses on breaking down inflation contributions into groups linked to import intensity. In practical macro terms, this provides a way to gauge how much of the measured inflation rate is associated with prices for more import-exposed goods and services, compared with items with lower import content.
For FX traders, that composition is important because it can influence expectations for how long inflation pressures may last and what that implies for the Bank of England’s policy reaction function. If inflation is heavily concentrated in import-intensity components, changes in the exchange rate and global price dynamics can feed through more directly to headline inflation.
Traders should watch the next ONS publication for updated contributions (the next release is listed as 21 October 2026) and compare whether the balance of contributions across import-intensity categories is shifting over time.
Why this matters for FX
For GBP, this helps traders assess how much of inflation is being driven by imported goods prices versus domestically produced items. That matters for monetary policy expectations because it informs whether headline inflation pressures are more likely to persist (e.g., via import-cost channels) or fade as currency and global price effects change.