Jan CPI Remains Below Target Despite Lift...>

UK DATA: Jan CPI Remains Below Target Despite Lift from Energy Costs

-UK Jan CPI +1.8% y/y vs +1.3% in Dec

-UK Jan Core CPI +1.6% y/y vs +1.4% in Dec

-UK Jan RPI +2.7% y/y vs +2.2% y/y in Dec

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Consumer price inflation accelerated to its quickest pace since July, 

but remained below the Bank of England's 2.0% target for the sixth 

consecutive month (but below BOE expecte 1.3%). The introduction of 

electricity price caps in January of 2019 -- which was not replicated 

this year -- added 0.21 percentage points to the change in CPI, but a 

price cap scheduled for April should reduce CPI in months to come. 

Tensions in the Gulf pushed petrol prices 2.3p per litre higher between 

December and January, compared to a 2.6p fall in the same period a year 

ago, adding another 0.12 percentage points to the change in CPI. Core 

CPI inched higher, but coming base effects should not prevent the Bank 

of England considering a rate cut if incoming data remain weak.