United Kingdom's twelve-month Consumer Prices Index (CPI) reached 10.1% in January against the 10.5% increase recorded in December while missing estimates of a 10.3% print, the UK Office for National Statistics (ONS) reported on Wednesday. The index keeps moving away from its highest level since January 1981 at 11.1% last year.
Meanwhile, the Core CPI gauge (excluding volatile food and energy items) eased to 5.8% year to year last month versus 6.3% seen in December. The market consensus was for a 6.2% print.
The monthly figures showed that the UK consumer prices declined by 0.6% in January. The UK Retail Price Index for January stood at 0% MoM and 13.4% YoY, beating expectations across the time horizon.
“The largest downward contribution to the change in both the CPIH and CPI annual inflation rates between December 2022 and January 2023 came from transport (particularly passenger transport and motor fuels), and restaurants and hotels, with rising prices in alcoholic beverages and tobacco making the largest partially offsetting upward contribution to the change.”
“Core CPIH (excluding energy, food, alcohol and tobacco) fell to 5.3% in the 12 months to January 2023 from 5.8% in December 2022, the annual CPIH goods index eased slightly from 13.4% to 13.3% over the same period, while the annual CPIH services index fell from 5.8% to 5.2%.”