Investing.com - Consumer price inflation in the U.K. held steady for the third consecutive month in December, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price accelerated at a seasonally adjusted 2.7% in December, unchanged from November and in line with expectations.
Month-over-month, consumer price inflation rose 0.5%, in line with expectations, after rising 0.2% in November.
The rate of inflation remains above the Bank of England’s 2.0% target, but the Bank of England will not be obliged to write to the Chancellor of the Exchequer, as the inflation rate is less than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs eased to a seasonally adjusted 2.4% in December from 2.6% in November. Analysts’ had expected core prices to hold steady at 2.6%.
The retail price index rose 3.1% last month, compared to expectations for a 3% increase, after rising 3% November.
Following the release of that data, the pound was trimmed gains to trade little changed against the U.S. dollar, with GBP/USD adding 0.02% to trade at 1.6082.
Meanwhile, European stock markets were mixed. London’s FTSE 100 rose 0.1%, the EURO STOXX 50 shed 0.3%, France’s CAC 40 was flat, while Germany's DAX dipped 0.1%.
In a report, the U.K. Office for National Statistics said the rate of consumer price accelerated at a seasonally adjusted 2.7% in December, unchanged from November and in line with expectations.
Month-over-month, consumer price inflation rose 0.5%, in line with expectations, after rising 0.2% in November.
The rate of inflation remains above the Bank of England’s 2.0% target, but the Bank of England will not be obliged to write to the Chancellor of the Exchequer, as the inflation rate is less than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs eased to a seasonally adjusted 2.4% in December from 2.6% in November. Analysts’ had expected core prices to hold steady at 2.6%.
The retail price index rose 3.1% last month, compared to expectations for a 3% increase, after rising 3% November.
Following the release of that data, the pound was trimmed gains to trade little changed against the U.S. dollar, with GBP/USD adding 0.02% to trade at 1.6082.
Meanwhile, European stock markets were mixed. London’s FTSE 100 rose 0.1%, the EURO STOXX 50 shed 0.3%, France’s CAC 40 was flat, while Germany's DAX dipped 0.1%.