Free Trial

MNI BRIEF: UK Inflation Shock Unlikely A Directional Shift-ONS

(MNI) London

The overall directional trend for UK inflation remains lower, despite the upward surprise to both core and headline numbers in February, a spokesperson for the Office for National Statistics told MNI Wednesday.

Overall, there is no shift in expectations and from April onwards, base effects will mechanically push prices lower, all things being equal, an ONS spokesperson said. While not a forecast, the spokesperson said not to make too much of a single month's data.

The weighting basket for CPI calculations changed in February, but the ONS was clear there could be no assumption in either direction that the amendments had impacted the index level.

Earlier Wednesday, the ONS reported headline inflation rose to 10.4% from 10.1% in January, above expectations of a decline to 9.9%. (See MNI BOE WATCH: Financial Conditions Add To Case For No Change)

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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.