**As seen in Risk In The Week report 08/12/23, subscribe at cablefxm.co.uk/reports
U.K. headline prices rose by 7.9% Y/y in June vs the prior 8.7%, this came to be slower than the market consensus of 8.2%. The core figure eased from record highs to rise by 6.9% Y/y and 0.2% M/m, the monthly print showed the slowest pace since January. The biggest price upside moves were recorded in restaurants, food, and communication, while transport prices reported the only decline. The desk at ING reminded us that household energy bills slumped by 20% in July and that progress in food inflation should see the headline figure easing. However, ING said that the BoE is closely tracking services CPI which is seen rising faster. They hold the view that the central bank will have to lift the Bank Rate once more, which would mean a peak rate of 5.5% Looking ahead, a YouGov/Citi poll showed consumer inflation expectations easing in July to 4.3% from the prior 5.0%, long-term annual inflation also ticked lower to 3.2% from the prior 3.3%.
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