U.K. CPI inflation likely to rise by 1.5% in 2016

In United Kingdom, the CPI inflation data increased marginally and stood at 1.1% yoy in October against 1.0% in the previous month.  The month on month PPI input figure increased by 0.2% In October against 0.5% in September, whereas PPI input marginally steady at 0.0% against -0.1% previously.

"We expect headline inflation to average 0.0% in 2015, +1.3% in 2016 and +1.8% in 2017, while we now forecast core CPI inflation to average +1.1% this year, +1.5% in 2016 and +1.6% in 2017. For RPI, we now forecast an outturn of 2.2% in 2016 (up by 0.1pp versus our previous profile) while our 2017 forecast is unchanged at 2.8%", estimates Barclays.