UK: CPI likely to print 2.0% - Rabobank

Rabobank analysts point out that the UK CPI is expected to print 2.0% and 1.8% for the headline and the core measure, respectively.

Key Quotes

“A negative surprise due to lower fuel prices is however possible and this would push the headline measure just below the Bank’s official 2%-target. However, the 3+% growth seen in the wage numbers combined with a weak productivity record should eventually continue to produce some domestically generated price pressures, keeping the MPC on edge.”