UK: Key events today – Nomura
Analysts at Nomura are out with a brief preview of the UK’s inflation data that are lined up for release today at 0930 GMT.
Key Quotes:
“Consumer prices: We expect a small decline in CPI inflation in January to 2.9% from 3% in December. We expect more notable declines over the coming months thanks to the inflationary effect of past falls in sterling beginning to unwind. We see CPI inflation falling below 2.5% by mid-year. As for RPI inflation, we see that falling a tenth too, with downside risks on account of a possible unwind in the RPICPI wedge (which rose sharply in December).
Producer prices: A feature of the January PMI and CBI manufacturing surveys was a sharp rise in the output price indicators (the latter to its highest since 1984). This explains our forecast for a strong rise in official output prices at the core and headline levels (0.4% m-o-m). We expect sterling's rise during January to almost offset the rise in dollar crude oil prices when it comes input prices.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
