UK: Headline inflation to pick up to 2.8% y/y in April – TDS

Analysts at TDS are looking for UK’s headline inflation to pick up to 2.8% y/y in April, which is 0.1ppts ahead of the BoE estimate from the May IR, and 0.2ppts above consensus at 2.6%.

Key Quotes

“We look for some further strength in core inflation due to Easter effects, but also for higher gas/electricity prices to cancel out any relief from lower fuel prices. We’ll be looking at the details to see if inflation continues to be driven by exchange rate pass-through, or if there are any signs of domestic inflation pressures brewing.”

“Eurozone: We’re looking for above-consensus outcomes from Germany’s ZEW survey today, particularly for the current assessment component. There are also speeches from the ECB’s Nowotny at 4:30pm BST and Coeuré at 6pm.”