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Below is a list of our U.K. Publications for the last 6 months. If you are looking for reports older than 6 months please email info@pantheonmacro.com, or contact your account rep
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CPI inflation likely jumped to 9.9% in July, from 9.4% in June, led by rises in motor fuel and food CPI inflation.
Eurozone data and the BRC's figures both point to a renewed rise in core goods CPI inflation in July.
Surveys show services prices have continued to rise at an above-average rate, albeit less quickly than in Q2.
Dave Ramsden is the first MPC member to admit rates might need to be cut "quite quickly" in the medium term.
The cuts currently priced-in by markets from late H2 2023 aren't big enough to lower households' interest bill.
But CPI inflation won't be near the target until Q4 2023; pre-election fiscal stimulus will limit the scope for easing.
We think that GDP dropped by 1.6% month-to-month in June, almost entirely due to the extra public holiday.
GDP fell by 2.2% in 2002 and 1.7% in 2012; changes in the economy's composition since then won't help much.
Our forecast implies GDP fell by 0.3% q/q in Q2, but this probably won't mark the start of a recession.
The MPC's forecasts signal clearly that markets' medium-term expectations for Bank Rate are too high.
But concerns about persistence in domestic price setting, and looser fiscal policy, will spur further hikes.
We now expect the MPC to raise Bank Rate to 2.00% in September and 2.25% in November, and then to pause.
We have revised up our forecast for Q4 CPI inflation by 1.0pp since early July; energy prices have surged again.
But we have revised down our forecast for the level of GDP by only 0.5pp in Q4; fiscal policy will respond.
People also have shown more willingness to deplete savings; we still expect a recession to be narrowly avoided.
The BoE is considering active gilt sales that would result in a reduction in the APF of £50B-to-£100B in year one.
This implies active sales of £15B-to-£65B if they begin in Q4; we expect sales at the lower end of that range.
The CBI’s Distributive Trades Survey shows retailers’ stock levels are far too high; discounting will intensify.
Accrued debt interest looks set to top the OBR’s forecast by £21B this year, and £15B in the medium term...
...This leaves insufficient headroom for Ms. Truss to de- liver her tax cuts and still run a balanced current budget.
Labour supply has not been hit by April’s increase in NI contributions; reversing it won't be self-funding.
The headline rate of CPI inflation topped the MPC forecast in June, due to higher motor fuel and food prices.
But the core rate fell, undershooting its forecast, as retailers struggled to pass on higher producer prices.
Core CPI inflation will fall sharply early next year, when recent falls in commodity prices will feed through.
The Governor emphasised at Mansion House that the drop in the workforce has been a key driver of rate rises.
So its 0.8% 3m/3m rise in May, the largest since 1984, should ensure the MPC sticks to a 25bp hike in August.
The workforce has scope to rebound further, while vacancy and survey data imply job growth will slow.
The tax cut plans of Tory leadership contenders should be treated with a pinch of salt, given past experience.
Tax cuts won't lift GDP, if they are financed partially by spending reductions; the latter have a higher multiplier.
We doubt that even Ms. Truss would take away the BoE's independence.
We think that CPI inflation leapt to 9.4% in June, from 9.1% in May, exceeding the MPC’s 9.1% forecast.
But the upside surprise will be due to a massive rise in motor fuel prices, and another increase in food inflation.
Core inflation likely fell to 5.8%, from 5.9% in May; June 2021’s surge in goods prices likely wasn’t repeated.
Business investment fell in Q1, partly due to supply disruption preventing orders being fulfilled.
But supply shortages are easing, and with Brexit and Covid uncertainty dissipating, capex should rebound.
A renewed rebound in business investment will support GDP growth in the second half of the year.
June's Decision Maker Panel Survey shows firms' expectations for price and wage rises have increased.
But households' inflation expectations have fallen back, and more importantly, commodity prices have plunged.
Core goods CPI inflation will turn negative next year, helping to return the headline rate to 2% by late 2023.
The potential medium-term gains might make the nearterm stasis caused by a new Tory leader contest worth it.
A more pragmatic approach to E.U. relations would lift exports and capex; supply-side reforms are overdue.
A snap election isn't likely, given the big majority a new leader would inherit and the poor economic backdrop.
CPI inflation in May was 1pp higher in the U.K. than in theEurozone; Brexit hasn’t helped but isn’t the main cause.
U.K. core goods prices were depressed more by lock- downs; base effects will lower the U.K.’s rate soon.
The relative strength of U.K. services inflation is due to VAT hikes and a rise in course costs for E.U. students.
Core CPI inflation declined to 5.9% in May, from 6.2% in April, and will fall further in June.
Retailers are shrinking their margins, rather than passing on surging producer prices fully to consumers.
Faltering demand will constrain future core price rises, enabling the MPC to stop its hiking cycle this year.
OIS rates do not accurately reflect investors’ expectations for Bank Rate; a sub-2% peak wouldn’t be a shock.
The outlook for sterling is more closely tied to overall risk sentiment in markets than the outlook for U.K. rates.
Our call that rates will top out at 1.75% assumes positive supply-side developments which will boost risk appetite.
We think the headline rate of CPI inflation was stable at 9.0% in May, despite rising food and fuel inflation.
Core CPI inflation likely fell; data suggest the rise in goods prices didn’t match the big jump a year ago.
Retailers are starting to accept a squeeze on the margins, while used car prices are continuing to fall.
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