UK CPI: A touch stronger than expected, no clear steer for BoE in November
Commenting on the Consumer Price Index (CPI) published today, Royal London Asset Management’s senior economist, Melanie Baker, said:
“Headline inflation is still likely to fall quite a lot further. Powerful negative base effects from electricity gas bills which rose a lot last October should pull energy and headline inflation down further in October. I’d expect core inflation to follow past falls in energy inflation lower with a lag. Input price data still look consistent with further falls in core goods price inflation to me. I still expect a modest recession in the UK and for a looser labour market and well-behaved inflation expectations to see lower pay growth next year.
“Domestically-driven inflation still looks strong for now though. Year-on-year services inflation rose. Although that came from a few rather than many services categories, the rate of services inflation remains very high. Pay growth remained strong on the data released yesterday too of course, though the labour market figures released so far this month look consistent with a less tight labour market.
“The Bank of England has continued to signal that if inflation pressures prove persistent then it will likely tighten monetary policy further. Headline inflation is still running a bit below the staff forecast from August. A rise in services inflation isn’t a source of comfort though; the Bank of England has repeatedly been putting a lot of emphasis on services inflation. In the context of still strong domestic inflation pressure, I have been expecting the Bank of England to hike rates once more by the end of the year.”
For further information please contact
Lena Nunkoo, PR Manager
- Email: email@example.com
- Tel: 02032 725 816
- Mob: 07919 171 919
About Royal London Asset Management:
Established in 1988, Royal London Asset Management is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
Royal London Asset Management manages £153 billion of assets as at 30 June 2023. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
Issued September 2023 by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 80 Fenchurch Street, London, EC3N 2ER.
Visit rlam.com to learn more.
More press releases you might like
Menopause talent drain – half of women going through menopause are considering leaving work
New research from Royal London, the UK’s largest life, pensions and investment mutual, reveals that menopause symptoms are making work harder for 86% of women, with five in 10 thinking of leaving employment altogether as a result.
UK CPI inflation: A downside surprise means more room for a ‘skip’ from the Bank of England
Melanie Baker, Royal London Asset Management’s senior economist, comments on the Consumer Price Index (CPI) published today.
UK GDP – still at risk of recession
Melanie Baker, senior economist at Royal London Asset Management, comments on this morning’s UK GDP data.