**As seen in Risk In The Week report 07/17/2022, subscribe at cablefxm.co.uk/reports
U.K. CPI ticked up to 9.1% Y/y from the prior 9.0%, this was the highest reading seen since the series began back in 1997, while an ONS indicative modeled CPI estimate showed prices at the highest since 1982. On a month-over-month basis, prices accelerated to 0.7% easing from the prior 2.5%. The core figure eased to 5.9% from the prior 6.2% Y/y. More than half of the rise in May consumer prices was due to housing and transport, together these contributed for 4.3 percentage points over the last 12 months. Meanwhile, Food and non-alcoholic drinks made the largest upward monthly contribution to prices, recreation fell the most. Wells Fargo Securities reminds us that back in April the U.K.’s energy price cap was lifted, this sent headline prices above 9.0% as local electricity and gas prices soared. Another price cap lift is coming in October, the Bank of England has signaled that the adjustment could send CPI up to or above 11% Y/y, they said in a note. Aside from inflation, the docket is set to see labour market figures and retail sales.
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