Barclays: UK Wage Growth Will Keep Inflation Sticky

Barclays economists said before the release of the UK June CPI data on Wednesday that continued wage growth may lead to high inflation in the UK.
Core inflation should hold at 7.1 percent, with changes in wages and prices keeping service sector inflation steady, according to Barclays estimates.
Figures released last week showed that average earnings at UK businesses continued to grow more than expected in the three months to May, while other indicators (such as GDP growth, credit data and some other labor market data) showed the opposite, suggesting the economy was struggling. Cool down.