Preview: Inflation (May 2020) - 0070BST.....>

UK DATA: Preview: Inflation (May 2020) - 0070BST 17/6/20 

------------------------------------------------------------------------- 

- CPI: BBG: 0.0% m/m, +0.5% y/y; Prev (Apr) -0.2% m/m, +0.8%y/y 

- Core CPI: BBG: 1.3% y/y; Prev (Apr) 1.4% y/y 

- CPIH: BBG: 0.6% y/y; Pre(Apr) 0.9% y/y 

- Y/Y inflation slowed to 0.8% in Apr due to energy and water prices -- subject

to changes of domestic energy price caps -- and falling fuel prices. 

- Both effects are likely to continue to weigh on inflation, hence, markets

expect annual inflation to slow further to 0.5% in May. 

- But also clothing, footwear and furniture are likely to drag down annual CPI. 

- The BRC shop price survey noted that these sectors saw the biggest drop in

prices due to promotions to encourage consumer spending. 

- Moreover, May's services PMI signals another drop in average prices charged.