UK inflation: ready to fly lower for Easter 2018
- Recreation stabilised CPI inflation in January, but further falls lie ahead. Distortions to airfares from an earlier Easter may mean April inflation disappoints expectations then. The MPC won’t see those numbers before its May decision.- Domestic-focused cuts of the CPI have strengthened while inflation in imported items has started to slow. Additional rate hikes are required to bring inflation back to the target, and I expect the MPC to deliver.
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