oversnap/E+ via Getty Images
After a hotter-than-expected UK CPI print in January, inflation data in February came in below expectations as it reversed the rise seen in the previous month. The headline CPI index was up 0.4% MoM and 2.8% YoY
February U.K. CPI: Cool February Inflation Counters The January Flare Up
Summary
- February's UK CPI inflation data came in below expectations, with headline CPI at 2.8% YoY and core CPI at 3.5% YoY.
- Energy and food prices contributed to inflation, but energy remains deflationary YoY; food, alcohol, and tobacco prices are significant inflation drivers.
- Services inflation remains the primary driver of core CPI inflation, especially housing cost growth which is near 30 year highs.
- The Bank of England may remain cautious on rate cuts despite the cooler inflation data, with market reactions showing moderated gilt rate declines.
Earnings analysis of individual stocks and macro analysis of broad asset class, sector and country-specific funds to discover trends using a top-down approach. For more content visit my website or follow me on X (@MTSInsights).
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.