UK CPI y/y

The U.K.’s inflation rate rose sharply to 3% in January, coming in above analyst expectations, according to data released by the Office for National Statistics (ONS) on Wednesday. Economists polled by Reuters had expected a reading of 2.8% in the twelve months to January. Britain’s consumer price index (CPI) fell to a lower-than-expected 2.5% in December, with core price growth also slowing further. Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by 3.7% in the 12 months to January, which ...

The US threat of aluminum and steel tariffs and reciprocal tariffs initially shook the markets, but the implementation at some future date gives the impression that the threats are negotiating ploys helped take away the sting. In his first term, Trump converted some of the tariffs to quotas, and that one scenario for the likely outcome now. Still there is great uncertainty of the US intent and strategy. For its part, the greenback finished last week lower against all the G10 currencies but the Japanese yen. It is not coincidental ...

British inflation unexpectedly slowed last month and core measures of price growth - tracked by the Bank of England - fell more sharply, according to official data that will be welcomed by finance minister Rachel Reeves after recent a market selloff. The annual rate of inflation eased to 2.5% in December from 2.6% in November, the Office for National Statistics said. Economists polled by Reuters had mostly expected a headline inflation reading of 2.6%. The BoE - which will announce its next interest rate decision on Feb. 6 - forecast ...

Services inflation is set to bounce around 5% into the winter, while headline CPI could get close to 3% in January. That reduces the chance of a rate cut in December, but in the spring, we think there is still a good chance the Bank of England will accelerate its easing cycle. UK services inflation was a tad hotter than the economist consensus had expected in October. But at 5%, it’s only fractionally higher than in September and in line with the Bank of England’s (and our own) forecast. Interestingly though, when we drill down into ...

U.K. inflation picked up sharply to a higher-than-expected 2.3% in October, data from the British Office for National Statistics showed Wednesday, tempering expectations of a December interest rate cut from the Bank of England. The hike marks a sharp increase from the 1.7% rise recorded in September and exceeds the 2.2% forecast of economists polled by Reuters. The latest print once again brings inflation above the Bank of England’s 2% target, potentially dampening the prospects of a final interest rate cut this year. Sterling ticked ...