UK CPI steadies in January, core CPI beats estimates

The UK consumer prices stagnated in the month of January, arriving at 3.0%, bettering estimates of 2.9% y/y, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge ticked higher in Jan, coming in at +2.7 y/y. Markets had predicted the core figures to come in a tad firmer at +2.6%.

On monthly basis, the UK inflation figures decelerated sharply, coming in at -0.5% last month, as compared to +0.4% previous and expectations of -0.6%. 

ONS reports, “the largest downward contribution to change in the rate came from prices for motor fuels, which rose by less than they did a year ago. The main upward effect came from prices for a range of recreational and cultural goods and services, in particular, admissions to attractions such as zoos and gardens, for which prices fell by less than they did a year ago.”