FXstreet.com (Barcelona) - With a busy day of UK data ahead, the team at Capital Economics have highlighted a few areas which they will be paying attention to.
Firstly they feel that CPI inflation will have fallen slightly from 2.6% to 2.5%, in line with the market consensus view. However they note that patrol prices rose 3% in August, core inflation seems likely to have eased.
They write, “Inflation should fall to a greater extent in September – perhaps to 2% – as the anniversary of last year’s rise in utility prices is reached. And while the recent increase in oil prices means that a sustained fall in inflation below 2% is unlikely within the next year, inflation still seems to be on course for a lower rate further ahead.”
Firstly they feel that CPI inflation will have fallen slightly from 2.6% to 2.5%, in line with the market consensus view. However they note that patrol prices rose 3% in August, core inflation seems likely to have eased.
They write, “Inflation should fall to a greater extent in September – perhaps to 2% – as the anniversary of last year’s rise in utility prices is reached. And while the recent increase in oil prices means that a sustained fall in inflation below 2% is unlikely within the next year, inflation still seems to be on course for a lower rate further ahead.”
