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MNI BRIEF: UK Inflation Slows, But BOE Set To Hike 50bp In Feb

(MNI) London

Headline inflation in the UK slowed in December, but still remains clearly above 10% and core inflation was unchanged at 6.3% year-on-year, underlining the challenge the Bank of England's Monetary Policy Committee will have in coming months.

CPI rose 0.4% m/m in December and 10.5% year-on-year, which was modestly slower than the 10.7% seen in November, the Office for National Statistics said Wednesday. However, core inflation, a measure of the underlying price pressures excluding mainly food and energy costs, was unchanged at 6.3%. Both numbers remain well above the BOE's 2% target rate.

The BOE next meets on February 2, with expectations of a further 50bps hike in the Bank Rate to 4.0% as policymakers continue with their inflation fight into 2023.

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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