UK CPI inflation to remain at precisely zero

UK CPI inflation data for July is scheduled to release on 18th, August. 
The country's outlook for inflation remains muted. Energy prices have fallen again and the continuing appreciation of the pound is restraining the prices of imported oods. The latter is a powerful but ultimately temporary effect on inflation.

Societe Generale says, set against those factors, the labour market is tightening ,which should in due course push up services inflation. Moreover, there are some signs that food price deflation has bottomed out. 

Societe Generale estimates, "Core inflation should be steady at 0.8% yoy and petrol price deflation should be roughly stable. The overall result should be that CPI inflation  stays at precisely 0.0% yoy but RPI inflation should rise modestly from 1.0% yoy to 1.1% yoy."