BULLET: UK Data: Dec CPI Falls Well Below BOE Forecast of....>

UK Data: Dec CPI Falls Well Below BOE Forecast of 2.4%     

--UK December CPI +0.2% m/m; +2.1% y/y vs +2.3% November

--UK December Core CPI +0.3% m/m; +1.9% y/y vs +1.8% November 

--UK Nov House Prices +2.8% y/y vs +2.7% y/y Oct; London prices -0.7%y/y 

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Annual CPI fell 0.2pp in December, primarily a result of fuel 

prices dropping by 4.4% between November and December, the sharpest fall 

since Jan of 2015. Combined with lower air fares, the transport sector 

shaved a hefty -0.23pp from the change in annual CPI.  However, core CPI 

suggested some acceleration in domestic price pressures, with a rise in 

overnight accomodation and mobile phone charges lifting core inflation 

to an annual rate of 1.9% from 1.8% in Nov. House price inflation 

accelerated modestly, but London prices have declined over eight of the 

past nine months.