UK CPI
  • Prior +10.1%
  • CPI +2.0% vs +1.7% m/m expected
  • Prior +0.5%
  • Core CPI +6.5% vs +6.4% y/y expected
  • Prior +6.5%
  • Core CPI +0.7% vs +0.6% m/m expected
  • Prior +0.6%

Despite the government introducing the Energy Price Guarantee, gas and electricity prices still made the largest upward contribution to inflation rates on the month. Additionally, rising food prices also made a large upward contribution to the jump in inflation .

This will keep the pressure on the BOE to tighten further, even if the central bank wants to angle towards a less aggressive stance as the UK economy is set to enter into a prolonged recession period going into next year.