UK inflation (CPI) for April blew through expectations, + 4.5% Y / Y, Core + 3.7% (when the official target is 2%). Part was due to Easter distortions, but the trend is higher and worrisome to authorities. This puts pressure on the Bank of England to lift rates, the risk noted in our Layman’s Guide to the Week Ahead. But the UK real sector is going sideways; it can’t afford higher official rates. Poor UK - a heck of a fix.
Robert Craven
Robert Craven
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