UK Inflation Jumped to 3.6% in June as Food Costs Rose

Watch UK Inflation Jumped to 3.6% in June as Food Costs Rose - Bloomberg on Dailymotion

Transcript

00:00There was a time where a 0.2 percentage point surprise on CPI would send the markets into a tailspin.

00:06Because this is way above the target, isn't it? We're still above 3.5%.

00:09And I think that's what the news is today, is that we are close to this threshold of 4%,

00:15which the Bank of England has cited as a level that households and businesses get a bit more sensitive to inflation.

00:21So I think what this does is it tells you that if you're going to get rate cuts, they're still going to be quite slow.

00:27And the Bank of England has been cutting rates at a quarterly cadence.

00:30I think it seems very unlikely to me at this stage and sitting here right now, having seen that print this morning,

00:35that they're going to go any faster than that.

00:37But I don't think it stops them lowering rates further.

00:40It's just that it's going to be a slow burn and they're going to move slowly down.

00:44And I think you'll probably get one, maybe two more cuts this year.