- The UK CPI increased 0.7% year-on-year in January compared to the 0.5% expected.
- The UK monthly CPI reaches -0.2% in January compared to the -0.4% expected.
- GBP / USD remains under pressure below 1.3900 following the release of the UK CPI.
The 12-month rate of the UK CPI consumer price index was + 0.7% in January compared to + 0.6% seen in December, while exceeding expectations of + 0.5%, the UK Office for National Statistics (ONS) reported on Wednesday.
In the meantime, the core inflation indicator (excluding volatile food and energy prices) reached + 1.4% year-on-year last month compared to the + 1.4% registered in November, beating the forecast of + 1.3%.
Monthly figures showed that UK consumer prices hit -0.2% in January versus expectations of -0.4% and + 0.3% seen the previous month.
Main points (via ONS):
The Consumer Price Index, including owner-occupiers housing costs (CPIH), increased 0.9% in the 12 months to January 2021, from 0.8% seen in December 2020.
The greatest contribution to the 12-month inflation rate of the IPCH came from the recreation and culture sector (0.35 percentage points).
Furniture and household items, restaurants and hotels, food and transportation had the largest upward contributions to the change in the 12-month rate in January 2021, while the fall in clothing and footwear prices had an effect downward.
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