UK: Headline CPI to inch higher to 2.0% y/y - Barclays

The Barclays Research Team offers a brief preview of their expectations from Wednesday’s UK inflation data due on the cards at 0930 GMT.

Key Quotes:

“On the data front, for the Feb. inflation report (Wed.), we forecast that headline CPI inched higher to 2.0% y/y (cons.: 1.9%; last: 1.8%) to hit the BoE target.

But we see this as a temporary peak rather than marking the start of a sustained rise in UK inflation pressures, whereas we expect core CPI grew marginally to 2.0% y/y (cons.: 1.8%; last: 1.9%).”