UK headline CPI to remain unchanged at 3.1% y/y in December - TDS

The FX strategy team at TD Securities published their view on the upcoming release of the UK inflation figures for the month of December.

Key quotes: 

“We look for headline CPI to remain unchanged at 3.1% y/y in December, just above the top of the BoE’s target range. The big driver here is likely to be energy prices; we see core CPI slipping from 2.7% to 2.6% y/y in Dec, but with the big jump in crude oil prices into the end of the year, headline CPI will remain well-supported. In the November IR, the BoE had forecast a 2.7% print for Dec CPI, so this is clearly considerably stronger.”