That is a step up from the ~40% pricing before the UK CPI data release. But it still lacks an oomph to it, in reassuring that the central bank will follow through at the end of 1H 2024. I mean when you look at the data itself, goods inflation did ease slightly from 1.9% to 1.8% on the month but services inflation – which is the main issue eyed by the BOE – inched higher from 6.4% to 6.5% in January.
While it is easy to focus on the “miss” in the inflation numbers, the devil is in the details.
Taking that into consideration, this should not be a game changer to the BOE outlook. It doesn’t offer any reason for the central bank to rush any changes to their policy considerations. But in the meantime, it will keep pound optimism in check at least.