UK: Soft inflation data – TDS

According to analysts at TD Securities, today's UKinflation data for July was in line with consensus, but a touch softer than they had been looking for.

Key Quotes

“Core CPI was unchanged at 1.9% y/y, and headline inflation pushed a tenth higher to 2.5% y/y. We saw the rebound that we were looking for in computer game prices from last month, but clothing prices remained weaker than normal, with the 2m combined June-July fall the largest one since 2012. This suggests that retailers needed to keep prices low in order to make sales, supporting our forecast for downside risks to tomorrow's retail sales report.”