UK: Expect headline inflation to hold steady at 0.6% - TDS

Research Team at TDS, notes that the pass-through effects are still taking time to show up in UK’s inflation figures, but the reduction of base effects in the energy sector are helping support a move up in inflation.

Key Quotes

“We expect headline inflation to hold steady at 0.6% y/y (consensus: 0.7%, BoE: 0.8%) in particular as competition in the supermarket sector remains strong, while core jumps a little from July’s 1.3% to 1.5% y/y in August (consensus: 1.4%).”