Financial Markets Analysis by Lloyds TSB

There have been some important developments on the UK inflation front recently. Firstly, the ONS has published a consultation document outlining proposed changes to the way mortgage interest payments are captured within the RPI.

There have been some important developments on the UK inflation front recently. Firstly, the ONS has published a consultation document outlining proposed changes to the way mortgage interest payments are captured within the RPI. The changes, if implemented, could have important consequences for the volatility and profile of retail price inflation from early next year. Second, the Bank of England (BoE) recently published its latest Quarterly Inflation Report (QIR). The QIR outlines the MPC’s updated views on gdp growth and consumer price inflation. In this Weekly, we examine these developments and assess their implications.

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