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(Z1) Off Lows, But Remains Weak


Still Vulnerable


Bullish Price Sequence

UK Data: CPI Lowest Since July 2017 In Feb; Core Gives Back Jan Gain 
--UK February CPI +0.4% m/m; +2.7% y/y vs +3.0% in January
--UK February Core CPI +0.6% m/m; +2.4% y/y vs +2.7% y/y in January 
--UK February Input PPI -1.1% m/m; +3.4% y/y vs +4.5% y/y in January
CPI inflation surprised to the downside in February, falling 0.3pp to 
2.7% - the lowest since July last year. Analysts had pencilled in a fall 
to 2.8% before the release. The drop was largely driven by base effects 
over a number of components, as price rises from the same period a year 
ago, the result of sterling weakness, fell out of the annual comprison. 
The biggest drags came from transport (-0.10pp), food (-0.06pp) and 
restaurants and hotels (-0.08pp). Fuel, a sub-component of transport, 
accounted for -0.04pp of the overall change. Prices of raw materials 
continued to slow. Input PPI fell to the lowest level since Jun 16 and 
carried through to output PPI (+2.6% y/y  - the lowest since Nov 16).