Inflation data on the agenda in Europe today | investingLive

The Eurozone CPI report will be the final estimate for August, with the preliminary one seen here. Given that this is the final estimate, it typically isn’t a market mover. That especially since the numbers are likely to reaffirm the ECB’s stance of keeping policy steady at the moment. Core annual inflation was estimated at 2.3% in the preliminary report with services inflation remaining sticky at 3.1%.

As such, the more interesting release today will be the UK CPI report for August at 0600 GMT.

The estimate for for headline annual inflation to come in at 3.8% – similar to July. Meanwhile, core annual inflation is estimated to ease slightly to 3.6% – down from 3.8% in July.

Analysts are mostly projecting that food price inflation in the UK is going to keep creeping higher for now, set to peak in September. That is likely to keep the headline estimate elevated. However, services inflation is expected to gradually decline with most calls arguing for a deceleration in prices for travel services. That is largely due to a surge in airfares in July, which saw a later index date.

Still, the calls are relatively mixed going into the report later. On the lower end, BofA and Morgan Stanley sees core annual inflation in the UK printing at 3.5% in August. Meanwhile, ING and UBS have that at 3.7% while HSBC sees headline annual inflation hitting 4.0%. And then we have Barclays, Nomura, and Deutsche all calling for a 3.6% estimate on core annual inflation.

But whatever the case is, the report today will not likely do much to change up the BOE outlook for the Thursday decision.