Summary

• The latest rise in UK headline CPI tells us virtually nothing about the scale and duration of the inflation wave to come.
• A forthcoming increase in household energy bills this July is likely to take it towards 3.5-4%, depending on where wholesale natural gas prices go next.
• We don't think the bar for a Bank of England rate hike has been met.

By James Smith, Developed Markets Economist, UK

The latest rise in UK headline CPI tells us virtually nothing about the scale and duration of the inflation wave to come. The Bank of England is still flying

5.34K Followers