The Barclays Research Team offers a brief preview of their expectations from Wednesday’s UK inflation data due on the cards at 0930 GMT.
“On the data front, for the Feb. inflation report (Wed.), we forecast that headline CPI inched higher to 2.0% y/y (cons.: 1.9%; last: 1.8%) to hit the BoE target.
But we see this as a temporary peak rather than marking the start of a sustained rise in UK inflation pressures, whereas we expect core CPI grew marginally to 2.0% y/y (cons.: 1.8%; last: 1.9%).”