U.K. inflation likely to reach 3 pct in final quarter of 2017, says Lloyds Bank

Consumer price inflation in the U.K. is likely to resume its acceleration over the course of this year, according to a Lloyds Bank research report. Inflation in the nation has recently stalled in its upward movement.

Non-energy import costs, including food, is expected to mainly drive inflation in the U.K. henceforth. Weakening underlying cost pressures thereafter should give some countereffect as growth in the U.K. economy decelerates modestly and reduced labor market tightness restricts the eventual overshoot relative to target.

“Still, on both our, and the Bank of England’s forecasts, the overshoot is expected to send CPI inflation to around 3.0 percent in Q4”, added Lloyds Bank.

At 20:00 GMT the FxWirePro's Hourly Strength Index of British Pound was highly bearish at -104.731, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -71.638. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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