UK CPI preview: Core CPI to push 0.2ppts higher to 1.8% - TDS

The Research Team at TDS offers a brief preview on the UK inflation report, which will be released shortly.

Key Quotes:

“We’re looking for inflation to accelerate to1.9% y/y in January, in line with both consensus and the BoE’s forecast. As for market reaction, we think that any downside surprise would be looked through as markets just anticipate an even larger jump next month, while an upside surprise would see a bigger reaction as markets focus on European inflation momentum. Looking through the push higher in headline inflation, we also look for core CPI to push 0.2ppts higher to 1.8% y/y (mkt 1.7%).”