The GBP/USD pair is resuming its descent.
The British pound, paired with the US dollar, is on a downward trajectory. The current GBP/USD exchange rate is at 1.2136.
A recent report from a British retail trade consortium reveals that inflation in UK stores is on a declining path. In September, the inflation rate reached 5.2%, marking the fifth consecutive month of decline. The last time such a low level was recorded was back in August 2022.
The report underscores that one of the key factors contributing to this downward price trend is the reduction in mark-ups on domestically grown food products.
A year ago, the overall inflation in the UK stood at 11%, marking a 41-year high. Since then, prices have been on a steady decline and have now reached 6.7%.
While the reduction in consumer-level inflationary pressure is a positive sign for the pound, investors may not give it much attention in the near future as the focus shifts to the Federal Reserve's meeting and the release of the NFP employment report in the US for October on Friday.