UK: CPI to remain unchanged, core CPI to drop by 0.1 pp – Barclays

The Barclays Research Team provides a sneak peek at what to expect from today UK CPI report that will be published at 0830 GMT.

Key Quotes:

“We expect CPIH inflation to come in at 2.3%y/y in May (up 0.1pp from April) while CPI remains unchanged (2.4%y/y) and core CPI drops by 0.1pp to 2.0%y/y. 

The support for higher prices is expected to come from transport (fuel and air fares) and to some extent from housing costs while the rest of the component should print soft. Finally, we see RPI softer at 3.3%y/y after 3.4%y/y.”