Renewed drop in inflation may hit BOE hawks

Edinburgh

BANK of England (BOE) hawks and government bond-market bears may suffer a setback this week should they find inflation, which erodes returns on fixed-income assets, vanished after just one month.

After weeks dominated by Greece's bailout talks, UK gilts may benefit from data due on July 14 that, according to a Bloomberg survey of economists, will show consumer prices stagnated in the 12 months through June.