UK January CPI +3.0% vs +2.8% y/y expected ...Middle East

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UK January CPI +3.0% vs +2.8% y/y expected
Prior +2.5%Core CPI +3.7% vs +3.7% y/y expectedPrior +3.2%

here. A strong rebound there is one of the causes for the hotter report in January. Besides that, the introduction of VAT on private school fees was material, leading to a 12.7% monthly increase there. The annual inflation rate for education was marked up to 7.5% as such, up from 5.0% in December.

The only bright side is that the monthly changes to both headline and core inflation were negative. Headline monthly inflation was seen down 0.1% while core monthly inflation was seen down 0.4%. That owed much to a fall in both housing and household services.

    This article was written by Justin Low at www.forexlive.com.

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