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CPI Steady at BoE Target, Core Inflation....>

UK DATA: CPI Steady at BoE Target, Core Inflation Edges Higher
-UK June CPI +2.0% y/y vs +2.0% in May
-UK June Core CPI +1.8% y/y vs +1.7% in May
-UK June RPI +2.9% y/y vs +3.0% y/y in May
CPI steadied at the BoE's target in June, in line with both projections 
in the May QIR and MNI's survey median. Core CPI edged higher, with 
clothing and footwear adding 0.08 percentage points to the change in 
CPI. The upward contribution was largely due to a base effect, after 
unusually-aggressive discounting in June 2018. The outturn is consistent 
with MPC members' conclusion that headline CPI will remain "around the 
2% target," before falling below that level in the current quarter. The 
benign inflationary outlook raises further questions over the Bank's 
suggestions that interest rates could rise over the medium term, 
particularly with pipeline inflation falling.

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