UK CPI fell -0.5% MoM in January but was up +3.0% YoY (vs +3.0% YoY expected), showing broad disinflation across major categories.

• Core CPI slowed to +3.1% YoY (Dec: +3.2%), with goods inflation falling to +1.6% YoY (from +2.2%) and services easing to +4.4% YoY (from +4.5%), indicating softer underlying price momentum.

• Transport inflation decelerated to +2.7% YoY (Dec: +4.0%) and -1.8% MoM, driven by motor fuel prices falling -2.2% YoY as petrol and diesel prices declined versus increases a year earlier.

• Food and non-alcoholic beverages inflation slowed to +3.6% YoY (Dec: +4.5%) and -0.1% MoM, with broad downward contributions from multiple categories including bread, meat, dairy, and beverages.

• Housing and household services eased to +4.2% YoY (Dec: +4.6%) and +0.2% MoM, reflecting slower owner-occupiers’ housing costs (+3.9% YoY) and falling gas prices (-2.7% YoY), partly offset by higher electricity (+5.3% YoY).

• Education inflation dropped sharply to +5.1% YoY (Dec: +7.6%) and 0.0% MoM as private school fee increases from last year’s VAT change dropped out of the comparison.

• Restaurants and hotels rose +4.1% YoY (Dec: +3.8%) but fell -0.7% MoM, while alcohol and tobacco slowed to +4.6% YoY (Dec: +5.2%), showing mixed services price trends.

• Overall disinflation reflected negative contributions from transport, food, and education divisions, partially offset by upward pressure from a smaller number of categories.