March 22, 2023 07:40 GMT
Jump in Services Inflation Ahead of Thursday's BOE Meet
DataHomepagemarkets-real-timeData BulletBulletMarketsFixed Income NewsForeign Exchange NewsUKBank Of England (BOE) Market News
UK FEB CPI +1.1% M/M (FCST +0.6%); JAN -0.6% M/M
UK FEB CPI +10.4% Y/Y (FCST +9.9%); JAN +10.1% Y/Y
- “Inflation ticked up in February mainly driven by rising alcohol prices in pubs and restaurants following discounting in January" according to the ONS. Restaurants and hotels accounted for the largest upwards effect, up +12.1% y/y (highest since June 1991).
- A jump in clothing and food prices also boosted the February CPI rate, the latter driven by high energy costs and bad weather in parts of Europe.
- Lower recreation and culture and motor fuels inflation only partly offset higher February prices elsewhere.
- In aggregate, goods inflation rose +1.3% m/m and services by +1.0% m/m, leading to a 0.6pp acceleration to +6.6% y/y for services.
- All up, the UK recorded a +1.2% m/m acceleration in core CPI, which jumped 0.4pp to +6.2% y/y; the first rise in core in five months.
- This data gives the hawks on the MPC ammunition to push for a 25bp hike tomorrow. The MNI Markets team looks for a 25bp hike from the BOE tomorrow on the back of this data.
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