17 Feb 2016
UK January CPI was slightly weaker than expected - ANZ
Research Team at ANZ, notes that the UK’s January CPI was slightly weaker than expected, falling 0.8% m/m, driven by the plunge in oil prices.
Key Quotes
“But as the fall was less than in January 2015, the annual rate edged up to 0.3% (vs +0.2%) and it was the third consecutive month above zero. Food and non-alcoholic drinks fell 0.3% y/y, reflecting the ongoing competition between in the supermarket sector. Transport prices also fell 0.4% y/y as airline prices dropped (energy related). That helped to restrain core inflation, which rose 1.2% y/y vs 1.4% y/y in December. Essentially, low inflation and its persistent undershoot remains largely an energy price story.”
Key Quotes
“But as the fall was less than in January 2015, the annual rate edged up to 0.3% (vs +0.2%) and it was the third consecutive month above zero. Food and non-alcoholic drinks fell 0.3% y/y, reflecting the ongoing competition between in the supermarket sector. Transport prices also fell 0.4% y/y as airline prices dropped (energy related). That helped to restrain core inflation, which rose 1.2% y/y vs 1.4% y/y in December. Essentially, low inflation and its persistent undershoot remains largely an energy price story.”