U.K. inflation hit the Bank of England's target of 2% for the first time in four years in December, falling from 2.1% in November and coming in below forecasts that were 2.1% also.
Annual inflation has now declined for six months in a row.
"The largest contributions to the drop in the rate came from prices for food & non-alcoholic beverages, and recreational goods & services," the U.K. government says. "These were partially offset by an upward contribution from motor fuels."
However, CPI accelerate to +0.4% on month in December from +0.1% in November and vs consensus +0.5%. (PR)
Core CPI +1.7% on year vs +1.7% and +1.8%.
Factory output prices (PPI) flat on month vs -0.2% and +0.2%.(PR)
The pound skips a little vs the dollar and is +0.1% at $1.6403, while the FTSE 100 is -0.4%