UK: CPI to edge a bit higher again in May, from 2.7% to 2.8% y/y - TDS

Analysts at TDS are looking for UK CPI to edge a bit higher again in May, from 2.7% to 2.8% y/y which leaves them a hair above consensus of 2.7%.

Key Quotes

“While the y/y rate may continue to edge a bit higher through the rest of the year, that’s largely driven by a relatively bullish crude oil forecast, and core inflation will likely top out around current levels (looking for unchanged 2.5% y/y in May vs mkt 2.4%). Some of the survey data suggests that the UK may finally be through the worst of the exchange rate pass-through.”