📝U.K. Monthly Core CPI Readings Suggest Prices Won’t Meet Target: Commerzbank

Given the latest inflation figures, this is certainly a big plus. Even though inflationary pressures are slowly easing, it is unfortunately also a matter of concern that we are still a long way from the all-clear. It may well be that the headline rate will fall to the 2% target in the coming months due to favorable base effects, before picking up again somewhat. However, there is still no evidence that inflation will settle at this level in the long run. On the contrary, the latest seasonally adjusted monthly rates of change for the core rate tend to indicate that it is stabilizing above 3% year-on-year, and the most recent figure for April even raises fears of a pick-up in inflation. - Commerzbank