- Prior +2.0%
- Core CPI +3.3% vs +3.4% y/y expected
- Prior +3.5%
The standout detail here is a further drop in core annual inflation in July. The headline reading is also lower than estimated but is a slight increase to June. But as core prices are seen easing further, that's a vote of confidence for the BOE to perhaps look to cut again in the months ahead. The odds of a September rate cut were ~36% before the report, so we'll see how that changes up later when the market opens.
