UK: Inflation likely to have continued its march upward in June - TDS
|Analysts at TDS suggest that UK inflation is likely to have continued its march upward in June, with headline inflation edging up to 3.0% y/y (mkt: 2.9%) which is an important level, but not one that requires an explanatory letter from the Governor to the Chancellor.
Key Quotes
“While petrol prices likely fell in the month, energy companies have been hiking their prices, and this continued into June. Core inflation, meanwhile, is likely to have remained at 2.6% y/y in the month (same as mkt). These won’t be the peaks for inflation this year, either – core is likely to rise another 0.1 or 0.2ppts into the autumn, while headline inflation could jump into the mid-3% range if oil prices pick up as we expect into the end of the year. This will undoubtedly heat up debate about a (single) rate hike later this year, though we think tepid economic growth should keep a lid on rates.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.