Details from the March 2016 UK CPI data report 12 April 2016
- Prior 0.3%
- 0.4% vs 0.3% exp m/m. Prior 0.2%
- Core 1.5% vs 1.3% exp y/y. Prior 1.2%
- 0.6% vs 0.3% exp m/m. Prior 0.4%
- RPI 0.4% vs 0.3% exp m/m. Prior 0.5%
- 1.6% vs 1.4% exp y/y. Prior 1.3%
- RPI ex-mortgages 0.4% vs 0.5% prior m/m
- 1.6% vs 1.4% prior y/y
The core is the big news. Airfares and clothing & footwear were the main drivers of higher inflation, note the ONS.
The headline number puts inflation to the highest since Dec 2014 but as we can see from the details, there's still many components that are lagging behind. If April doesn't wash out these numbers then that might have a few folks starting to think about adjusting their BOE forecasts. Still a long way to go but if we get the core nearer to 2% then the hawks will start squawking.
The pound loved the numbers for around 50 pips as it pushed to 1.4312.
For the record, airfares were up 22.9%
UK CPI & core y/y
