UK CPI inflation was -0.1% MoM (vs -0.3% MoM expected) and 3.0% YoY (vs 2.8% YoY expected) in January, up from 2.5% YoY in December and the highest since March 2024.

• The CPI goods annual rate rose from 0.7% to 1.0%, while the CPI services annual rate rose from 4.4% to 5.0% (highest since August 2024).
• Core CPI inflation was -0.4% MoM (vs -0.5% MoM) and 3.7% YoY (vs 3.7% YoY), the highest since April 2024.
• The rise in the annual rates was a result of weak monthly readings in January 2023: CPI monthly inflation at -0.6% MoM and core CPI inflation at -0.9% MoM.
• The segments with the largest increases were alcohol and tobacco (+1.8% MoM), education (+2.4% MoM), food and beverages (+0.9% MoM), and housing and household services (+0.8% MoM).
• These were offset by strong declines in clothing (-3.3% MoM), furniture (-1.3% MoM), and restaurants and hotels (-1.0% MoM).