UK inflation eases to 10.1% in March, less than 9.8% expected; core unchanged at 6.2%

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Bankinter : March CPI stands at +10.1% in March (year-on-year) vs +9.8% estimated and +10.4% previous. The core rate is at +6.2% (year-on-year) vs +6.0% estimated and +6.2% previous. On the other hand, new home sales in London fell -39% in 1Q 2023 (year-on-year), according to real estate firm Molior London. They are at 10-year lows.

Analysis team’s view: Bad news. Inflation eases, although less than expected in March. The headline rate remains above 10% and the core rate unchanged. This will most likely lead the BoE to raise rates further in May, by +25bp to 4.50% vs. 4.25% currently. In this environment of higher financing costs, the housing market is likely to continue to deteriorate.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.