UK: Downside risks to inflation data - TDS

Analysts at TD Securities suggest that the UK inflation data for November is going to be the key economic release for today’s session and they are seeing downside risks, with headline CPI falling to 2.2% y/y and core inflation declining to 1.7% y/y (both a tick below consensus).

Key Quotes

“The reading on core inflation would mark the lowest print in nearly two years, but recent depreciation in sterling should help provide some support to inflation moving forward. The below-consensus print might play into the mildly dovish tone we expect from tomorrow's BoE policy meeting.”