UK: CPI likely to slip to 1.5% in October – TDS

Analysts at TD Securities are looking for the UK’s CPI to slip from 1.8% y/y in September to 1.5% in October (market 1.6%), in line with the BoE's forecast from the November MPR.

Key Quotes

“The entire deceleration in inflation is due to energy prices; household energy prices will be affected by the OFGEM cap, while fuel prices are also likely to decline a bit on a y/y basis. Stripping out the volatility, we're looking for core CPI to hold steady at 1.7% y/y (mkt 1.7%).”