Ahead of today's UK CPI release..........>

UK PREVIEW: Ahead of today's UK CPI release analysts at Barclays expect headline

CPI inflation to remain unchanged in January at 3.0%, supported by a 0.3pp rise

in core inflation to 2.8%. Meanwhile, they forecast CPIH inflation to edge up

0.1pp to 2.8%.

- Nomura expect a small decline in CPI inflation in January to 2.9% from 3% in

December. They expect more notable declines over the coming months thanks to the

inflationary effect of past falls in sterling beginning to unwind and see CPI

inflation falling below 2.5% by mid-year.

- SocGen say CPI inflation is likely to have held steady at 3.0% but think this

is just a pause before further gentle but steady declines in the following

months.

- RBC note risks are skewed to the upside (with forecasts skewed to a higher

rather than lower read). With oil having risen significantly in recent months,

it seems likely that CPI inflation will be relatively slow to fall in 2018 even

though the impact of previous exchange rate depreciation starts to fade.