UK: Downside surprise in inflation – TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TD Securities note that UK’s June inflation surprised to the downside today, with headline inflation at 2.4% y/y and core inflation at 1.9% (both 0.2ppt below consensus).

Key Quotes

“Looking at the details, however, the downside surprise shouldn't derail the expected BoE hike next month as it's more a matter of steeper discounting in a couple of categories (computer games and clothing) rather than a broad-based deceleration.”

“Overnight drama in the House of Commons saw the government survive by just 6 votes a customs union amendment to the Trade Bill. Monday and Tuesday's votes have shown that parliament now has a working majority for a harder Brexit, and no majority for a customs union.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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