UK January Inflation Rate Maintains 4%... Lower Than Expected
UK's January consumer prices rose 4% year-on-year, lower than expected.
On the 14th (local time), the UK Office for National Statistics announced that the January CPI (Consumer Price Index) remained at the same level as December, rising 4.0% year-on-year, and the core inflation excluding energy and food prices also recorded an annual rate of 5.1%, unchanged from the previous month.
The headline inflation was below economists' forecasted comprehensive CPI of 4.2%, and the core inflation was also lower than economists' expected 5.2%. Until last year, the UK showed higher consumer prices compared to Eurozone countries or the US. However, the UK's consumer prices still significantly exceed the Bank of England's inflation target of 2%.
With consumer prices coming in lower than market expectations, there are prospects that the Bank of England may soon proceed with an interest rate cut.
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According to foreign media, the previous day's US January CPI came out higher than expected, reducing the possibility of a Bank of England rate cut in June to only 40%, but immediately after the UK CPI announcement, it surged back to 72%.
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