TD Securities Sees UK CPI Rising to 2.9% in July on Energy Price Cap Shift

TD Securities forecasts UK headline CPI to reach 2.9% in July due to Ofgem energy price cap changes, with mixed trends in services and core goods inflation.

TD Securities projects that the United Kingdom's headline Consumer Price Index (CPI) will increase to 2.9% year-on-year in July, driven primarily by adjustments to the Ofgem energy price cap, according to FX Street. This rise reflects the impact of higher regulated energy costs on overall inflation.

Meanwhile, services inflation is expected to moderate, easing to 3.4%, while core goods prices are forecast to rise by 1.0%. These movements contribute to a steady core CPI rate of 2.6%, highlighting mixed inflationary pressures within the UK economy.

For Japanese investors and traders, the UK inflation outlook is significant as it may influence Bank of England policy decisions, affecting GBP volatility and cross-market sentiment in FX and equities.

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執筆: Sama Kane