Inflation Set to Drop but Outlook Remains Uncertain as Wages, Demand, and Bank of England Messaging Eyed
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Inflation figures being released this week are expected to show a large drop, mainly due to changes in the Ofgem energy price cap.
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However, the core inflation rate and CPI for services will be more telling indicators to watch.
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Wage growth is also expected to moderate slightly in the latest labor market data.
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Money supply and bank lending figures indicate potential weakness in aggregate demand.
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Multiple Bank of England policymakers are speaking this week, but their messaging on interest rates may be unclear.