Breaking: UK annualized CPI beats estimates with +1.8% in Jan, GBP/USD regains 1.3000
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- UK CPI rises 1.8% YoY in January vs. +1.6% expected.
- Monthly UK CPI arrives at -0.3% in January vs. -0.4% expected.
- GBP/USD attempts the bounce above 1.3000.
The UK Consumer Prices Index (CPI) 12-month rate came in at +1.8% in January, when compared to +1.3% booked in December while bettering expectations of a +1.6% print, the UK Office for National Statistics (ONS) reported on Wednesday.
Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at +1.6% YoY last month versus +1.4% booked in Dec while above the consensus forecast of +1.5%.
The monthly figures showed that the UK consumer prices arrived at -0.3% in Jan, missing -0.4% expectations and 0.0% last.
Main points (via ONS):
“The largest contribution to the CPIH 12-month inflation rate in January 2020 came from housing, water, electricity, gas and other fuels (+0.55 percentage points), which increased by 0.19 percentage points since December 2019.
The largest upward contributions to the change in the CPIH 12-month inflation rate between December 2019 and January 2020 came from gas and electricity prices; fuels and lubricants; clothing; and airfares.”
FX implications:
On upbeat UK CPI numbers, the GBP/USD pair jumped nearly 20-pips to 1.3015, gaining 0.12% on the day.
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