UK: CPI likely to accelerate to 1.2% Y/Y in Oct - TDS

Research Team at TDS, suggests that the markets may be a bit more sensitive to surprises in UK inflation, given the heightened concern that the BoE expressed in the November IR.

Key Quotes

“We look for CPI to accelerate to 1.2% Y/Y in Oct, recording its first ‘one-handle’ in two years, with stronger price pressures from core goods, food, and fuel. This is a touch higher than both consensus and the BoE’s 1.1% forecast from the Nov IR.”

“Also today, we have the BoE’s Carney, Shafik, and Saunders testifying at the Treasury Committee hearing on the November IR at 10am GMT.”