UK inflation to have softened in August - Barclays

The Barclays Research Team offers a sneak peek at what to expect from today’s UK CPI due to be released at 0830 GMT. 

Key Quotes:

“We forecast UK inflation to have softened in August both at the headline and core level. The y/y acceleration of CPI in July is likely to have been temporary and we expect m/m clothing prices to be less positive than a year ago, resulting in negative base effects. We also expect the influence of the sharp GBP depreciation after the EU referendum to continue to drop out of y/y UK inflation. For RPI, we expect the RPI-CPI basis to widen to 0.9pp after contracting sharply in July.”