December 2016 UK CPI 1.6% vs 1.4% exp y/y
Details from the December 2016 UK CPI & RPI data report 17 January 2017
- Prior 1.2%
- Core 1.6% vs 1.5% exp y/y. Prior 1.4%
- RPI 0.6% vs 0.4% exp m/m. Prior 0.3%
- 2.5% vs 2.3% exp y/y. Prior 2.2%
- Ex-mortgage interest 0.6% vs 0.3% prior m/m
- 2.7% vs 2.5% prior y/y
- Nov HPI 6.7% vs 6.1% exp y/y. Prior 6.9%
The jump in inflation is hardly unexpected, even with it beating expectations. Cable looked to be leaning that way before the figures and has since touched 1.2189.
The ONS note that airfares and food were the biggest contributors.
The biggest difference between this and what we saw in the Eurozone numbers is the jump in the core. As I've mentioned previously, prices always go up quicker than they come down so we're maybe seeing some of the currency-led price rises coming through quicker than they would the other way.
UK CPI & core y/y