Daily Economic Outlook:13th October, 2015

Inflation figures for September are today's domestic highlight. Last month saw the headline CPI rate, which has fluctuated between 0.1 and -0.1% y/y since February, fall back by 0.1pp to 0.0%, partly on the back of weaker petrol prices and a 0.2pp drop in core inflation to 1.0%.

The initial impacts from a fall in trade-weighted sterling and pickup in oil prices since mid-August are set to be countered by a further dip in forecourt prices and cuts to domestic gas tariffs in September. Thus both the headline and core rates are expected to remain unchanged, says Lloyds Bank.  

MPC members Ian McCafferty and Gertjan Vlieghe are scheduled to testify before the TSC this morning. Market attention is likely to focus on the policy views of the latter who will be making his first public appearance since joining the Committee in September, added Lloyds bank. 

Elsewhere, Germany's ZEW sentiment indices are expected to weaken again  in October, partly on the back of the Volkswagen emissions scandal. Meanwhile, Atlanta Fed President James Bullard, who is a non-voting member of the FOMC, is expected to reiterate his relatively hawkish position on the current US lift off debate.