BOE Bailey says projections show government will meet inflation target this year

BOE head Bailey is speaking on the economy and says:

• Our projections show government will meet inflation target this year
• Will not speculate on where April inflation data leaves us in terms of forecasts (below the forecasts perhaps)
• Quite a lot of inflation is imported.
• Our commitment to bring inflation to target is absolute.
• Today's numbers showed a welcome fall below double digits
• We have to focus on food and core inflation.
• Food inflation is taking longer to fall than was expected.
• Energy prices are contributing to food inflation.
• Producers have booked in higher costs for longer than usual.
• I don't think "spiral" is the right word to use when asked about core inflation in wages.
• Inflation expectations are coming down.
• The question for us is how sticky and stubborn is the process down for inflation.
• We have a tight labor market
• This is not a good era for forecasting given the huge shocks in the global economy

In the UK today, inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term rates exceeded expectations, with year-on-year Consumer Price Index (CPI) at 8.7%, against a forecast of 8.2% and a previous of 10.1%. Core CPI Core CPI Core Consumer Price Index (CPI) is a measure of inflation that excludes certain volatile items, and that's almost always food and energy prices. The idea behind using core CPI is that these items can have large fluctuations in prices due to factors such as weather, natural disasters and geopolitical tensions, which do not necessarily reflect underlying inflationary trends. By excluding these items, the core CPI provides a more stable and reliable measure of underlying inflation.The specific item Core Consumer Price Index (CPI) is a measure of inflation that excludes certain volatile items, and that's almost always food and energy prices. The idea behind using core CPI is that these items can have large fluctuations in prices due to factors such as weather, natural disasters and geopolitical tensions, which do not necessarily reflect underlying inflationary trends. By excluding these items, the core CPI provides a more stable and reliable measure of underlying inflation.The specific item Read this Term, which excludes volatile goods such as energy and food, also rose more than expected at 6.8% y/y vs 6.2% expected. The Retail Price Index (RPI) year-on-year likewise outpaced forecasts, hitting 11.4% against the anticipated 11.1%. In terms of producer prices, the Producer Price Index (PPI) Input came in below expectations at -0.3% on a monthly basis, while PPI Output was flat at 0.0%. The House Price Index (HPI) y/y revealed an increase in UK housing prices by 4.1%, lower than the 5.2% forecast.

Credit Suisse raises its expectations for UK terminal rate to 5% (from 4.75% previously). They see hikes in June and August. Meanwhile, Bank of America sees 3 more hikes to 5.25%