UK: CPI inflation to have hit 3.0% y/y in Sept – RBC CM

Analysts at RBC Capital Markets forecast UK CPI inflation to have hit 3.0% y/y in Sept, up from 2.9% y/y last time and a full percentage point above the BoE’s target, though just short of the level required to write a letter discussing corrective action.

Key Quotes

“Our economists expect that letter to have to be written after the next inflation print, but in any case given the BoE is effectively priced for a hike in November, the corrective action is already en route to being taken and unlikely to support GBP further.”