UK: Mixed inflation data – TDS

According to analysts at TD Securities, UK’s inflation data was mixed in February, with upside news on headline (1.9% y/y) but downside news on core (1.8% y/y).

Key Quotes

“Component-wise, clothing and airfares appear to have weighed on the core inflation print, while recreation (in particular the volatile computer games category) provided a small offset. Today's data should be of little concern the BoE as they head into tomorrow's meeting, with Brexit a key distraction.”

“On Brexit, the EU awaits Theresa May's letter requesting an extension of Article 50, likely to be released imminently. Reports early this morning suggest she will seek only a short extension and not a longer one, but we wouldn't completely rule out a two-stage request. Either way, it looks like her deal will be put to another vote next Monday or Tuesday, though MPs might seek to take control of next steps sooner.”