UK: Inflation likely to pull back slightly in March - TDS

In view of the analysts at TDS, UK inflation is likely to pull back slightly in March, particularly for core which should fall from 2.0% y/y in February to 1.7% y/y in March in part related to the timing of the Easter holiday (consensus: 1.9%).

Key Quotes

“We see this weakness as temporary, however, with scope for core inflation to break higher above 2% in subsequent months as past depreciation in the currency continues to support prices. For headline inflation, we see just a gradual decline to 2.2% y/y (consensus: 2.3%).”