Ahead of tomorrow's UK CPI release,......>

UK PREVIEW: Ahead of tomorrow's UK CPI release, analysts at Barclays expect

headline CPI inflation to remain at 2.7% (CPIH: 2.5%), supported by an 0.1pp

increase in core inflation to 2.5%. As for RPI, they also look for an unchanged

inflation print of 3.6% (index: 278.9).

- Nomura say while we forecast an unchanged CPI inflation reading of 2.7% in

March, we think there are, if anything, downside risks to this view. We also

expect RPI inflation to remain at 3.6%, implying a constant wedge between RPI

and CPI inflation of around 0.9pp.

- RBC look for CPI inflation to have eased again in March, but just by 0.1ppts

to 2.6% y/y with petrol prices having come off somewhat. It is a similar story

for RPI inflation where we forecast a 0.1ppt reduction to 3.5% y/y.