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CPI Slumps To 3-Year Low; Ammunition for....>

UK DATA
UK DATA: CPI Slumps To 3-Year Low; Ammunition for BOE Doves
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- DEC CPI 0.0% M/M, +1.3% Y/Y VS +1.5% Y/Y NOV
- DEC CORE CPI +0.0% M/M, 1.4% Y/Y VS +1.7% Y/Y NOV
- DEC OUTPUT PPI 0.0% M/M; +0.9% Y/Y VS +0.5% Y/Y NOV
- DEC CORE OUTPUT PPI -0.1% M/M; +0.9% Y/Y VS +1.1% NOV
- DEC INPUT PPI +0.1% M/M; -0.1% Y/Y VS -1.9% Y/Y NOV
- NOV HOUSE PRICES +2.2% Y/Y VS +1.3%r OCT
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Year/year CPI eased to 1.3% in Dec, hitting its lowest level since Nov 
2016 and coming in below market forecasts (BBG: 1.5%). CPI remains below 
the BOE's target of 2.0% for a fifth consecutive month, but closing in 
on their view of 1.25% in early 2020. Dec's downtick was driven by a 
sharp fall in prices for accomodations and clothing. Similarly, core 
inflation dropped to a three-year low in Dec. While y/y input prices 
fell 0.1% in Dec, output prices rose 0.9% on higher oil prices. 

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