By eFXdata — Jan 13 - 01:00 PM
Synopsis:
Morgan Stanley expects UK headline inflation to decline slightly to 2.5% year-on-year (YoY) in December, driven by easing core inflation, while fuel prices provide a partial offset.
Key Points:
-
Headline Inflation:
- Forecasted to decrease to 2.5% YoY in December, down from 2.6% YoY in November.
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Core Inflation:
- Expected to fall to 3.3% YoY, compared to 3.5% YoY in the prior month.
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Fuel Prices Impact:
- Fuel prices are projected to contribute positively, but this is not sufficient to offset the decline in core inflation.
Conclusion:
The slight moderation in headline inflation reflects a broader trend of easing price pressures, primarily in core components, as the UK economy navigates through persistent economic challenges.
Source:
Morgan Stanley Research/Market Commentary