U.K. inflation to see 5%, not 2%

It doesn’t matter if the March 2024 #UnitedKingdom inflation rate falls from 3.4% down to 3% or 2.6%……

This is small beans.

It is nearer the lower end of its travels.

The big call to make is when the #inflation rate is trading at ‘extremes’ to my illustrated moving average, appearing in the chart below.

Much like my American inflation note published yesterday, I think there is greater probability that #UK inflation rate should travel towards 5% rather than 1.8%……

and all that comes with it for interest rates and the equity prices of high growth (unprofitable) companies.

Incidentally, the U.K. inflation rate for March 2024 is due to be released on April 17th.

April 11, 2024

by Rob Zdravevski

rob@karriasset.com.au

Karri Asset Advisors