UK сonsumer price index rises more than forecast in January

According to the report from Office for National Statistics (ONS), the Consumer Prices Index (CPI) 12-month rate was 1.8% in January 2020, increasing from 1.3% in December 2019. Economists had expected a 1.6% increase.

The Consumer Prices Index including owner occupiers' housing costs (CPIH) 12-month inflation rate was 1.8% in January 2020, increasing from 1.4% in December 2019. The largest contribution to the CPIH 12-month inflation rate in January 2020 came from housing, water, electricity, gas and other fuels (+0.55 percentage points), which increased by 0.19 percentage points since December 2019.

The largest upward contributions to the change in the CPIH 12-month inflation rate between December 2019 and January 2020 came from gas and electricity prices; fuels and lubricants; clothing; and airfares.

A separate report from the ONS showed that the headline rate of output inflation for goods leaving the factory gate was 1.1% on the year to January 2020, up from 0.9% in December 2019.

The growth rate of prices for materials and fuels used in the manufacturing process was 2.1% on the year to January 2020, up from 0.9% in December 2019.

Petroleum products made the largest upward contribution to the change in the annual rate of output inflation.

Imported metals provided the largest upward contribution to the change in the annual rate of input inflation.