Investing.com – Consumer price inflation in the U.K. eased in line with expectations in December, declining for the third consecutive month, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation decelerated to 4.2% in December from 4.8% in November, broadly in line with market expectations.
U.K. consumer prices have declined in the past three months, after rising to a record-high 5.2% in September.
Month-over-month, consumer price inflation rose 0.4%, matching analysts’ forecasts.
The rate of inflation remains more than double above the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
"The last time there was a larger fall in annual inflation was between November and December 2008," the ONS said in a statement.
The largest downward pressures to the change in CPI annual inflation came from petrol, gas and clothing.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased in line with expectations by a seasonally adjusted 3.0% in December, slowing from 3.2% in November.
The retail price index rose 4.8% last month, above expectations for a 4.7% increase after rising 5.2% in November.
Following the release of that data, the pound held on to gains against the U.S. dollar, with GBP/USD rising 0.29% to trade at 1.5369.
Meanwhile, European stock markets remained sharply higher. The FTSE 100 climbed 1.1%, the EURO STOXX 50 surged 1.9%, France’s CAC 40 jumped 1.85%, while Germany's DAX rallied 1.55%.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation decelerated to 4.2% in December from 4.8% in November, broadly in line with market expectations.
U.K. consumer prices have declined in the past three months, after rising to a record-high 5.2% in September.
Month-over-month, consumer price inflation rose 0.4%, matching analysts’ forecasts.
The rate of inflation remains more than double above the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
"The last time there was a larger fall in annual inflation was between November and December 2008," the ONS said in a statement.
The largest downward pressures to the change in CPI annual inflation came from petrol, gas and clothing.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased in line with expectations by a seasonally adjusted 3.0% in December, slowing from 3.2% in November.
The retail price index rose 4.8% last month, above expectations for a 4.7% increase after rising 5.2% in November.
Following the release of that data, the pound held on to gains against the U.S. dollar, with GBP/USD rising 0.29% to trade at 1.5369.
Meanwhile, European stock markets remained sharply higher. The FTSE 100 climbed 1.1%, the EURO STOXX 50 surged 1.9%, France’s CAC 40 jumped 1.85%, while Germany's DAX rallied 1.55%.