CPI Surges To Six-Month High; Still Below...>

UK DATA: CPI Surges To Six-Month High; Still Below BOE Target

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- JAN CPI -0.3% M/M, +1.8% Y/Y VS +1.3% Y/Y DEC 

- JAN CORE CPI -0.6% M/M, +1.6% Y/Y VS +1.4% Y/Y DEC

- JAN OUTPUT PPI +0.3% M/M; +1.1% Y/Y VS +0.9% Y/Y DEC

- JAN INPUT PPI +0.9% M/M; +2.1% Y/Y VS +0.9%r Y/Y DEC

- DEC HOUSE PRICES +2.2% Y/Y VS +1.7%r NOV

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Y/Y CPI ticked up to 1.8% in Jan, outpacing market forecasts (BBG: 1.6%) 

and BOE expectations (1.25%) but still below the MPC's target. It was 

the highest level since July. Jan's uptick was driven by higher prices 

of gasoline and airfares, adding 0.12pp and 0.07pp respectively. Gas and 

electricity prices fell a year ago when price caps were introduced, but 

are unchanged this month, resulting in an upward contribution. Y/Y 

output and input PPI accelerated in Jan, while core output PPI slowed. 

The last time PPI, CPI and CPIH rose simultaneously was July 2019.