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14 Apr 2015
UK CPI risks falling into negative territory – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team previews the key UK data in this week - CPI and earnings data.
Key Quotes
“The UK reports its inflation measures, and given that CPI had fallen to zero in February, there is some risk that it falls into negative territory. A 0.2% monthly gain is necessary to keep it flat. Employment data are reported at the end of the week.”
“The focus will likely be on earnings as it is largely taken for granted jobs are being created and the unemployment level is trending lower (ILO measure 5.7% in February may fall to 5.6% in March).”
“UK earnings data are reported with an another month lag, which means that data will cover the three months through February compared with the same period a year ago. With and without bonuses the pace of growth is likely to be little changed at 1.8% and 1.6% respectively. Ironically, the drop in oil prices has boosted real wages than what businesses themselves have done.“
Key Quotes
“The UK reports its inflation measures, and given that CPI had fallen to zero in February, there is some risk that it falls into negative territory. A 0.2% monthly gain is necessary to keep it flat. Employment data are reported at the end of the week.”
“The focus will likely be on earnings as it is largely taken for granted jobs are being created and the unemployment level is trending lower (ILO measure 5.7% in February may fall to 5.6% in March).”
“UK earnings data are reported with an another month lag, which means that data will cover the three months through February compared with the same period a year ago. With and without bonuses the pace of growth is likely to be little changed at 1.8% and 1.6% respectively. Ironically, the drop in oil prices has boosted real wages than what businesses themselves have done.“