9 Jan 2015
UK inflation is set to take a dive in December – TDS
FXStreet (Barcelona) - The TD Securities Team forecasts UK inflation to decline from 1.0%Y/Y to 0.5% in December, below market expectations at 0.7%Y/Y.
Key Quotes
“UK inflation is set to take a dive in Dec. While markets are looking for a decline from 1.0% Y/Y in Nov to 0.7% Y/Y in Dec, we see downside risks and look for a decline to around 0.5% Y/Y instead, and in fact wouldn’t be surprised to see something even weaker than that.”
“We should see further downward pressure on core prices from early and steeper holiday sales, while food prices across Europe seemed to be quite soft, fuel prices plunged, and the lack of electricity price hikes this year will subtract an additional 0.2ppts.”
“Governor Carney will definitely be writing his first letter to the Chancellor next month.”
Key Quotes
“UK inflation is set to take a dive in Dec. While markets are looking for a decline from 1.0% Y/Y in Nov to 0.7% Y/Y in Dec, we see downside risks and look for a decline to around 0.5% Y/Y instead, and in fact wouldn’t be surprised to see something even weaker than that.”
“We should see further downward pressure on core prices from early and steeper holiday sales, while food prices across Europe seemed to be quite soft, fuel prices plunged, and the lack of electricity price hikes this year will subtract an additional 0.2ppts.”
“Governor Carney will definitely be writing his first letter to the Chancellor next month.”