2024-03-19 07:20:00 ET
Summary
- Last summer, investors thought the UK’s inflation problem was uniquely bad.
- Headline inflation will soon be below target and the Bank of England should have enough evidence of disinflation to be able to cut rates in August.
- That data, which we expect to drop to 6.0% from 6.5% in January, is perhaps the single most important indicator for determining the timing of the first rate cut.
By James Smith
Headline inflation should fall back on Wednesday
This Wednesday we’ll get the latest UK inflation figures, and the Bank of England will want to see confirmation that services inflation is starting to come down, as widely anticipated....
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For further details see:
The U.K.'s Improving Inflation Outlook In Six Charts