UK headline CPI rose 0.5% y/y to March - TDS

Research Team at TDS, notes that the UK headline CPI rose 0.5% y/y to March, up from 0.3% in Feb, while core prices also rose faster than expected, rising from 1.2% to 1.5%.

Key Quotes

“The details point to some Easter effects here with transportation prices unseasonably strong, but the effects here were not as strong as they could have been, and there was a bit more upside in hotels and restaurants, which could have also been Easter effects, as well as furniture, which is less likely effected.

We continue to see some persistent weakness in recreation prices which have been soft all year, So overall, some of the upside from March should unwind in next month's data, but the figures aren't entirely Easter effects.”