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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.
UK DATA
MNI (London)
UK May CPI surprised to the upside, holding steady at +8.7% y/y against expectations of a 0.3pp deceleration.
- Core CPI rose 0.3pp to +7.1% y/y, outpacing consensus looking for it to hold at +6.8% y/y. This was the highest since March 1992 (+7.2%).
- Flights, recreation and culture, services and second-hand cars drove the bulk of upwards price pressure in May. This had been foreshadowed to a degree by recent PMI data, flagging strong demand and service-sector price-setting power.
- Downwards pressure came from lower auto fuel and slowing food inflation (the latter down 0.7pp at +18.3% y/y).
- Goods CPI slowed 0.3pp to +9.7% y/y, whilst services CPI rose 0.5pp to +7.4% y/y, also a March 1992 high.
- Short-term prices increased by +0.7% m/m, a 0.2pp beat on consensus albeit slowing from the strong April rate of +1.2% m/m.
- For the BOE rate decision announcement due tomorrow, a 25bps hike to 4.75% remains the most likely outcome, however, this strengthens the argument made by the hawks for a return to 50bps increments. See our preview here.
Source: ONS
Why MNI
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.
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