UK: Expect at least a temporary reprieve from the upward march in core inflation - Scotiabank

Analysts at Scotiabank, explains that the UK will update CPI for March on Tuesday and the consensus expects at least a temporary reprieve from the upward march in core inflation that began in mid-2015 and headline inflation’s climb that began a few months later.

Key Quotes

“Our UK economist/strategist Alan Clarke thinks headline core inflation will crest at about 3% later in the year and then slide thereafter to the extent to which a weakened pound sterling is creating import price pressures that are passing through the CPI basket. If such forces prove to be transitory, then the Bank of England should look through it in favour of paying more attention to the complicated uncertainties surrounding ‘Article 50’ negotiations to exit the European Union.”