Latest data released by ONS - 16 January 2019
- Prior +0.2%
- CPI +2.1% vs +2.1% y/y expected
- Prior +2.3%
- Core CPI +1.9% vs +1.8% y/y expected
- Prior +1.8%
Inflation readings are very much in-line with estimates as the annual headline figure slips a little compared to November. However, core inflation actually improved and that is a good sign that real inflationary pressures are holding steady. Regardless, it's still all about Brexit now for the pound and the BOE so the figures here matter little.
Looking at the details, the largest downward contributors to the weaker headline reading are from petrol prices and air fares. Meanwhile, Q4 CPI comes in at +2.3% y/y, which isn't far off the BOE's inflation report forecast of +2.47%.
GBP/USD holds steady at 1.2884 on the release, sitting near the highs for the day still. EUR/GBP is holding lower at 0.8863 currently.
Some other details on the day as producer price and retail price figures are released:
- PPI output -0.3% vs 0.0% m/m expected
- PPI output +2.5% vs +2.9% y/y expected
- PPI input -1.0% vs -1.4% m/m expected
- PPI input +3.7% vs +3.7% y/y expected
- RPI +0.4% vs +0.5% m/m expected
- RPI +2.7% vs +2.9% y/y expected
- November HPI +2.8% vs +2.7% y/y prior
