Analysts at TD Securities point out that UK inflation for August is released this morning, and they see slight downside risks, with core inflation falling from 1.9% y/y to 1.7% y/y (mkt: 1.8%) and headline falling from 2.5% y/y to 2.3% y/y (mkt: 2.4%).
Key Quotes
“Previously-announced energy price hikes in August and September will complicate the headline inflation picture somewhat, with risks skewed to the upside, though ultimately this will just be a timing issue.”
“Pass-through from the weaker pound is abating, and we expect core inflation to hover near current levels for the remainder of the year. BoE Chief Economist Andy Haldane delivers a speech to mark the Central Bank of Estonia’s 100th anniversary at 9am BST.”
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