UK Inflation To Hit 7% By… April?

By Tyler Durden,

This morning’s most remarkable market observation comes from DB’s chief credit strategist Jim Ried, whose chart of the day shows that the UK may be starting at galloping, runaway inflation of up to 7% as soon as April, the direct result of the insanity taking place in Europe’s energy markets.

Picking up on our obsession with soaring breakevens, this morning Reid points out that the extraordinary moves in natural gas prices have continued to drive global inflation breakevens to multi-year highs, with the stand out feature of the last 24 hours being that index-linked bonds are now implying UK Retail Price Index (RPI) inflation will be 7% in April 2022.

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