UK CPI to accelerate to 0.8% Y/Y in September - TDS

Research Team at TDS, is looking for UK CPI to accelerate to 0.8% Y/Y in September (mkt 0.9%), as the drag from energy prices finally begins to wane.

Key Quotes

“In fact, the fuel/gasoline component of CPI is likely to come in positive on a Y/Y basis for the first time since August 2013. There are wider question marks than usual though around core inflation, where the post-Brexit exchange rate depreciation points to upside risks, while warmer weather will likely weigh on clothing/footwear prices as we’ve seen in other parts of Europe, keeping core inflation contained for now. We look for core CPI to edge just a tenth higher to 1.4% Y/Y, in line with consensus.”