UK: Inflation dragon seems to have gone into hibernation - ANZ

The inflation dragon seems to have gone into hibernation all around the world, with core and headline June UK CPI disappointing yesterday.

Key Quotes

“The BoE is likely to welcome the data after a minority of members sounded the warning alarm on inflationary pressures recently. With some softening of activity indicators (June PMI, May production & construction) and a lack of wage growth, the BoE may soften its recent hawkish tone. That said, Carney appeared on TV later on noting the big picture on inflation remains the same and expects it to remain above target “for a period of time” due to the GBP.”