UK: Inflation peaked? – ANZ

UK October CPI undershot expectations coming in unchanged at 3.0% y/y, with core dipping to 2.7% y/y, notes the research team at ANZ.

Key Quotes

“Of the components, 27% saw price falls and the largest index component – housing, water, electricity, gas and other fuels (which has a 29.4% weight) – only rose a paltry 0.1% m/m. The BoE expects that UK inflation should be peaking around now, so the fact that it may be doing so below levels the BoE anticipated may point to a very gradual and shallow tightening cycle.”