18.10.2016 - Inflation in the UK accelerated to 1.0%
Today in the UK was published important statistics on the index of consumer prices, whose growth accelerated to the highest level since November 2014. Thus, the figure rose to 1.0% in September, which is 0.1% higher than forecast. It should be noted that inflation rate was 0.6% in August. According to our estimates, the inflation rate rise will continue in the coming months due to rising oil prices and the devaluation of the British pound by about 20% after the referendum on the country's membership in the EU. Increasing inflation will deter the Bank of England from further lowering interest rates, which would support the British currency. Our medium-term outlook remains negative with the potential of reaching the levels 1,1500-1,1600, but at the same time, we do not exclude an upward correction in the near future to 1,2400-1,2500.