17 Nov 2015
UK inflation keeps its affair with negative trajectory intact - TDS
FXStreet (Delhi) – James Rossiter, Senior Global Strategist at TD Securities, notes that the UK inflation came in at -0.1% y/y as we expected, while core surprised to the upside by a tick, coming in at 1.1% y/y.
Key Quotes
“The slight pick-up in core inflation may be of some relief to the MPC, as it had plateaued for two months at 1.0%. This confirms our view that price pressures remain in the pipeline, given relatively healthy growth in both wages and unit labour costs in recent quarters.”
“The education component was under scrutiny today as the sharp rises in tuition fees in recent years fell out of the data. Indeed, inflation in this component showed a deceleration from about 9% y/y to about 5% y/y.”
Key Quotes
“The slight pick-up in core inflation may be of some relief to the MPC, as it had plateaued for two months at 1.0%. This confirms our view that price pressures remain in the pipeline, given relatively healthy growth in both wages and unit labour costs in recent quarters.”
“The education component was under scrutiny today as the sharp rises in tuition fees in recent years fell out of the data. Indeed, inflation in this component showed a deceleration from about 9% y/y to about 5% y/y.”