UK data coming up today - inflation - preview
A heads up for GBP traders, August inflation data is due from the UK today
Tuesday 12 September 2017 at 0830GMT
For the CPI, expected is 0.5% m/m and 2.8% y/y
- July was -0.1% and 2.6% respectively
For the core rate, expected is 2.5% y/y
- prior 2.4%
Preview via RBC, the bank forecast CPI inflation 2.8% y/y.
- This reflects the on-going impact of exchange rate depreciation associated with the EU referendum feeding through to higher import prices.
For the path ahead:
- We continue to see the peak for CPI inflation at 3.1% y/y in October this year before falling back gradually in 2018.
There is also Retail Price Index Inflation data
- expected 0.5% m/m & 3.7% y/y
- (priors 0.2% & 3.6%)
- expected 2.7% y/y, prior 2.6%
Says RBC on this measure:
- Forecast 2.7% y/y
- This more domestically focused index is less exposed to exchange rate pass-through effects