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10 Apr 2015
UK CPI expected to remain at 0.0% in March – RBS
FXStreet (Barcelona) - Previewing the UK CPI release to be released in the week ahead, Ross Walker, Senior UK Economist at RBS, expects CPI to remain stuck at 0.0%, with risks to the forecast tilted to the downside.
Key Quotes
“CPI inflation hit a historic low of 0.0% in February, where we expect it to remain in March as utility price cuts offset a rise in petrol prices.”
“The risks to our forecast appear to be skewed to the downside given the sharp fall in the BRC shop price inflation gauge and deflationary producer price trends.”
“The latest labour market data will also be closely watched for any signs of a rebound in wage inflation following the surprise fall a month ago, but we expect only a marginal pick-up in average earnings growth in February.”
“A more definitive assessment of wage pressures will not be possible for another couple of months and the release of the data covering April.”
Key Quotes
“CPI inflation hit a historic low of 0.0% in February, where we expect it to remain in March as utility price cuts offset a rise in petrol prices.”
“The risks to our forecast appear to be skewed to the downside given the sharp fall in the BRC shop price inflation gauge and deflationary producer price trends.”
“The latest labour market data will also be closely watched for any signs of a rebound in wage inflation following the surprise fall a month ago, but we expect only a marginal pick-up in average earnings growth in February.”
“A more definitive assessment of wage pressures will not be possible for another couple of months and the release of the data covering April.”