UK: Headline inflation to edge a bit higher to 2.8% in July – TDS

Analysts at TDS are looking for UK headline inflation to edge a bit higher, from 2.6% to 2.8% y/y in July (mkt 2.7%).

Key Quotes

“While we’re likely to see a bit of a drag from fuel prices, we expect to see another tick higher in electricity prices as the price hike from late June shows up in the data. And we look for core inflation to hold steady at 2.5% y/y (mkt: 2.5%), as it’s looking like the worst of the exchange rate pass-through is probably behind us now.”