Investing.com – Consumer price inflation in the U.K. eased in line with expectations in January, declining for the fourth 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 3.6% in January from 4.2% in December, broadly in line with market expectations.
That's the lowest annual rate of inflation since November 2010 and the biggest fall in prices in two consecutive months since late 2008.
U.K. consumer prices have declined in each of the past fourth months, after rising to a record-high 5.2% in September.
Month-over-month, consumer price inflation eased 0.5%, matching analysts’ forecasts.
The rate of inflation remains 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.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased in line with expectations by a seasonally adjusted 2.6% in January, slowing from 3.0% in December.
The retail price index rose 3.9% last month, below expectations for a 4.1% increase after rising 4.8% in December.
Following the release of that data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.24% to trade at 1.5728.
Meanwhile, European stock markets remained lower. The FTSE 100 declined 0.35%, the EURO STOXX 50 shed 0.25%, France’s CAC 40 dipped 0.4%, while Germany's DAX fell 0.2%.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation decelerated to 3.6% in January from 4.2% in December, broadly in line with market expectations.
That's the lowest annual rate of inflation since November 2010 and the biggest fall in prices in two consecutive months since late 2008.
U.K. consumer prices have declined in each of the past fourth months, after rising to a record-high 5.2% in September.
Month-over-month, consumer price inflation eased 0.5%, matching analysts’ forecasts.
The rate of inflation remains 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.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased in line with expectations by a seasonally adjusted 2.6% in January, slowing from 3.0% in December.
The retail price index rose 3.9% last month, below expectations for a 4.1% increase after rising 4.8% in December.
Following the release of that data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.24% to trade at 1.5728.
Meanwhile, European stock markets remained lower. The FTSE 100 declined 0.35%, the EURO STOXX 50 shed 0.25%, France’s CAC 40 dipped 0.4%, while Germany's DAX fell 0.2%.