Free Trial

CPI Outpaces Both Expectations, Bank Target.>

UK DATA: CPI Outpaces Both Expectations, Bank Target in July
JUL CPI +0.0% M/M, +2.1% Y/Y, CORE CPI +0.1% M/M, +1.9% Y/Y 
JUL RPI 0.0% M/M; +2.8% Y/Y VS +2.9% Y/Y IN JUN
JUL OUTPUT PPI +0.3% M/M; +1.8% Y/Y VS +1.6% JUN
JUL INPUT PPI +0.9% M/M; +1.3% Y/Y VS 0.3%r JUN
JUN HOUSE PRICES +0.9% Y/Y VS +0.9%r MAY; LONDON -2.7% Y/Y; v -3.1%r MAY
CPI was unchanged m/m in July, but rose 2.1% y/y, above the BOE's 
2% target and outpacing both MNI and Bbg expectations of a 1.9% rise. On 
top of this week's strong wages data, the inflation outcome will make 
uneasy reading for the Bank, which will see obvious signs of upside 
pressure, despite a sharply slowing economy. PPI input prices were 
higher in July, but the ONS couldn't state how or whether weaker 
sterling impacted the data, although they noted the high percentage of 
imported goods in the manufacturing chain.    

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.