UK Consumer Price Index (CPI) for September is due at 0830GMT.
CPI m/m:
- expected is +0.2%
- prior was +0.4%
CPI y/y:
- expected is +1.4%
- prior was +1.5%
‘Core’ CPI y/y:
- expected is +1.8%
- prior was +1.9%
–
- With the y/y reading coming in at 1.5% in August, UK inflation is showing well under the official 2% target
- And with expectations for September lower again at 1.4% y/y, there is plenty of room for the Bank of England (BoE) to continue with loose monetary policy
- The BoE currently have a Q3 forecast of 1.8% (the staff estimate from the August Inflation Report)
- Inflation in the UK has been held lower than it otherwise would have been by GBP strength earlier this year, also currently weaker global demand
