UK inflation holds at 4% in January

UK CPI rose 4% YoY in January, the same rate as in December; over the month, CPI dropped 0.5% from December. The monthly growth rate was 0.4% in December.

Core CPI YoY growth rate held at 5.1% in January; the index fell 0.9% over the month.

Service CPI: 6.5% YoY (Dec: 6.4%); -0.8% MoM (1.0%)

Bank of England in its last Monetary Policy Report projected service CPI to increase by 6.6% in January, so even though service inflation rebounded to 6.5%, largely a result of base effect, it still beat the central bank’s forecast.

Rent CPI: 6.5% YoY(Dec: 6.3%); 0.6% MoM (0.3%)
Food and non-alcoholic beverages CPI: 6.9% YoY (Dec: 8.0%); -0.4% MoM (0.5%)
Alcohol and Tobacco CPI: 12.4% YoY (Dec: 12.9%); 2.2% MoM (1.3%)