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WisdomTree Europe comments on UK inflation

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Commenting on UK inflation figures, Nick Leung, research analyst at WisdomTree in Europe, says: “UK inflation decelerated slightly in February, as CPI readings of 2.7 per cent reflected softer energy prices and base effects from Sterling’s depreciation last year.

“Despite this downtrend, CPI remains stubbornly above the Bank of England’s 2 per cent target and this will continue to drive up expectations for tighter monetary policy over coming months.
 
“Adding further pressure too will be the recent Brexit transition agreement, which now puts the UK economy on sounder footing to absorb higher interest rates and will likely represent an important component in the Bank of England’s path to policy normalisation.”
 
 

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