- Prior +3.9%
- CPI +0.4% vs +0.2% m/m expected
- Prior -0.2%
- Core CPI +5.1% vs +4.9% y/y expected
- Prior +5.1%
- Core CPI +0.6% vs +0.4% m/m expected
- Prior -0.3%
Uh oh, looks like the disinflation narrative in the UK is taking a bit of a hit here. Both headline and core annual inflation nudged higher towards the end of last year and that will keep the BOE on edge to start the new year. The pound has jumped higher as a result, with cable rising from 1.2605 to 1.2640 on the day.
Looking at the details, services inflation remains sticky and remains a big issue in this report. The estimate for services inflation is unchanged at 6.0% y/y and it rose by another 0.7% m/m. Besides that, there is a further moderation in food price inflation on an annual basis but it is seen up 0.5% on the month in December.