Just when the dominant market narrative was for higher inflation expectations, the UK poured cold(er) water on that theory. February’s Consumer Prices Index (CPI) print slowed against expectations, rising 0.4% year-on-year (almost half the expected amount). It perhaps should not be too surprising that clothing prices fell - who after all is really dressing to impress in a lockdown and retailers that can maintain an online presence will be heavily discounting prices to attract some attention. Only when we return to a more normalised and open economy can sharply higher inflation surprises manifest and, even then, that is not a given. I do not think the inflation genie is out of the bottle just yet.