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Will UK Inflation Report Show A Decline In Core Inflation?

Published 08/19/2014, 03:34 AM
Updated 05/14/2017, 06:45 AM

Market movers today

The situation in Ukraine continues to be the main focus of the markets. The key question in the short term is still whether the conflict will escalate to the point where Russian troops go into Ukraine.

US CPI is the main release on the macro front. US core CPI is expected to rise 0.2% m/m, taking the annual rate up to 2.0% from 1.9%.

Housing starts and permits for US are expected to show a rebound after a fairly weak development in the past months. Permits and housing starts have been the weak piece in the housing puzzle, while data on sales and housing confidence have picked up recently.

UK inflation data is expected to show a small decline in core inflation to 1.9% y/y in July from 2.0% y/y in June. Core inflation has been fairly stable between 1.6% and 2% over the past 3-4 quarters.

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