UK Jan CPI rises to the highest rate since June 2014, but misses estimates

The UK consumer prices extend its bullish momentum in January, arriving at 1.8% versus December’s +1.6%, although came in a tad softer than estimates of a 1.9% rise, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge steadied in Jan at +1.6 y/y. Markets had predicted the core figures to show an increase of +1.7%.

On monthly basis, the UK inflation figures turned into negative territory, coming in at -0.50% last month, as compared to +0.5% previous and expectations of -0.50%.  

ONS reports, “The main contributors to the increase in the rate were rising prices for motor fuels and to a lesser extent food prices, which were unchanged between December 2016 and January 2017, having fallen a year ago. These upward pressures were partially offset by prices for clothing and footwear, which fell by more than they did a year ago.”