Fall in CPI Boosts Chance of Near-Term BOE..>

UK DATA: Fall in CPI Boosts Chance of Near-Term BOE Rate Cut

-UK Dec CPI +1.3% y/y vs +1.5% in Nov

-UK Dec Core CPI +1.4% y/y vs +1.7% in Nov

-UK Dec RPI +2.2% y/y vs +2.2% y/y in Nov

-UK Dec CPIH +1.4% y/y vs +1.5% in Nov

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Consumer price inflation fell to its lowest level since November of 

2016, undercutting the Bank of England's 2.0% target for the fifth 

straight month. The data could well shift fence sitters on the MPC 

toward a rate cut later this month. Earlier Weds, MPC member Michael 

Saunders declined to tell an audience in Northern Ireland whether he 

plans to renew his vote for a rate cut, but gave no indication his 

view had changed. Hotel prices shaved 0.09 percentage points 

from the change in CPI, with accomodation prices falling more 

dramatically in 2019 than in recent years.