India's consumer price inflation eases to 5.07% in January

India's consumer price inflation eases to 5.07% in January

India's consumer price inflation eases to 5.07% in January

The figures further highlight that social sector rent increases, now based on CPI plus one per cent are increasing proportionally more than those in the private sector.

United Kingdom inflation in January was higher that the market expected and keeps the prospect of a Bank of England interest rate hike in play over the coming months.

Consumer price index (CPI) numbers due at 0930 GMT are expected to show inflation annual inflation eased to 2.9 percent in January, from 3 percent the previous months - still well above the BoE's 2 percent target.

"Over the coming months, as the fading impact of previous sterling weakness unwinds, domestic inflation pressures are expected to build, ensuring that the return in CPI towards its 2% target is expected to be very slow", he said.

"It seems domestically driven inflation could seamlessly take over from the sterling-related price rises we have seen since the Brexit vote".

It means prices are still rising faster than wages, according to the latest data, and have been for a full 12 months.

Mr Brettell said it now looks like the next rise "may well happen in May".

CPI measures the growth in price of everyday items including fuel, food, clothing and household goods.

ONS senior statistician James Tucker said: 'Headline inflation was unchanged with petrol prices rising by less than this time a year ago.

The ONS reports the main upward effect comes from prices for a range of recreational and cultural goods and services, in particular, admissions to attractions such as zoos and gardens, for which prices fell by less than they did a year ago.

Retail inflation cooled in January on the back of slowing food prices, while industrial output growth in December was better than expected, thanks to robust manufacturing and capital goods sectors. Auto insurance prices rose 1.3 percent, the most since 2001.

The British Pound lost ground following the mixed data prints, with GBP/USD slipping below the 1.3750 region, but the move was short-lived as the pair ended the day at 1.3791.

The rate, as reported by the Office for National Statistics (ONS), is close to November's six-year high of 3.1%.

"The one positive is that oil prices have softened materially since the beginning of February, which is now translating into lower breakeven rates of inflation". It grew by 8.4 per cent during the month as compared to just 0.6 per cent in December 2016.

"The continued correction in prices of vegetables would dampen food and headline inflation in the ongoing month".

But last week the Bank of England said it's likely to raise interest rates sooner and by more than it thought only three months ago because Britain's slow-moving economy is getting a boost from the global recovery. Powell, speaking Tuesday at his ceremonial swearing-in, suggested that the central bank would push ahead with gradual interest-rate increases, and that officials "remain alert to any developing risks to financial stability".

Related news