BULLET: UK Data: January CPI Sinks To BOE Forecast of 1.8%...>

UK Data: January CPI Sinks To BOE Forecast of 1.8%     

--UK January CPI -0.8% m/m; +1.8% y/y vs +2.1% December

--UK December Core CPI -0.8% m/m; +1.9% y/y vs +1.9% December 

--UK Dec House Prices +2.5% y/y vs +2.7% y/y Nov; London prices -0.6%y/y 

------------------------------------------------------------------------

After falling by 0.2pp in December, CPI fell a further 0.3pp in 

January to the BOE's forecast of 1.8% y/y - its joint-lowest reading 

since December 2016. Driving the falls were continued weakness in fuel 

prices as well as the anticipated Ofgem tariff cap on electricity and 

gas. Household utility prices -- which include water -- shaved 0.22pp 

from the annual change in the headline rate. The CPI-Core CPI wedge was 

negative for the first time November 2016, illustrating that volatile 

temporary factors are accounting for the downward pressures in 

inflation. House price inflation decelerated at the weakest rate since 

July 2013 and London prices have not increased over the past 10 months.