According to the data released by the UK Office for National Statistics (ONS) today; The Consumer Prices Index including owner occupiers housing costs (CPIH) 12-month inflation rate was 1.8% in January 2020, above the expectation of 1.6%. The CPIH 1-month inflation rate was -0.2% in January 2020, compared with -0.6% in January 2019, above the expectations of -0.4%.

Here, CPIH is the main indicator that is closely followed by the markets. On annual basis, it had been retreated since April 2019, in line with the market expectations and on December 2019 it was completed the year at 1.4%. However, in January it reached 1.8% and the largest contribution to CPIH 12-month inflation rate was housing, water, electricity, gas and other fuels.

The increase in the overall price levels, which slowed down in nearly 5 months, recovered as of January. This data may continue to recover as of next month and in this case, this recovery can indicate that the negative trend will end technically and that the Bank of England is heading for a 2 percent inflation target.


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