UK December CPI +1.3% vs +1.5% y/y expected

Author: Justin Low | Category: News

Latest data released by ONS - 15 January 2020


  • Prior +1.5%
  • CPI 0.0% vs +0.2% m/m expected
  • Prior +0.2%
  • Core CPI +1.4% vs +1.7% y/y expected
  • Prior +1.7%
Ouch, those are some relatively poor figures as UK inflation falls to fresh three-year lows (lowest since November 2016) in December. This will no doubt spur calls for the BOE to act sooner rather than later or risk falling into a low inflation trap.

The pound is marked lower to 1.2986 from 1.3015 before the data release.

Looking at the details, services inflation falls to its lowest since April 2018 with falling hotel prices and women's clothing prices - due to discounting - among other things pushing down consumer inflation last month.

Some other details on the day as producer price and retail price figures are released:

  • PPI output 0.0% vs +0.1% m/m expected
  • PPI output +0.9% vs +1.0% y/y expected
  • PPI input +0.1% vs +0.2% m/m expected
  • PPI input -0.1% vs -0.9% y/y expected
  • RPI +0.3% vs +0.4% m/m expected
  • RPI +2.2% vs +2.3% y/y expected
  • November HPI +2.2% vs +1.0% y/y expected
  • Prior +0.7%; revised to +1.3%

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