Forex Flash: UK inflation to rise at 2.9% YoY in March - RBS

FXstreet.com (San Francisco) - The National Statistics is scheduled to publish the UK inflation report for March on Tuesday April 16 at 8:30 GMT. Market expects a steady inflation at 2.8% between February and March. However, RBS analyst team sees the inflation accelerating somewhat to 2.9% in the third month of the year.

Overall, RBS forecasts "headline CPI inflation to rise to 2.9% in March from 2.8% in February, reflecting rising food and energy inflation," the bank states in a recent published report. The Bank also "forecast core CPI inflation to edge down to 2.2% in March from 2.3% in February and RPI/X inflation to rise to 3.3% in March."

RBS assumes that as they "expect further energy and, to a lesser degree, food price inflation pressures to push
headline CPI inflation higher in March."