UK: Inflation peaked? – ANZ

Sandeep Kanihama FXStreet Contributor

UK October CPI undershot expectations coming in unchanged at 3.0% y/y, with core dipping to 2.7% y/y, notes the research team at ANZ.

Key Quotes

“Of the components, 27% saw price falls and the largest index component – housing, water, electricity, gas and other fuels (which has a 29.4% weight) – only rose a paltry 0.1% m/m. The BoE expects that UK inflation should be peaking around now, so the fact that it may be doing so below levels the BoE anticipated may point to a very gradual and shallow tightening cycle.”

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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