U.K. inflation has fallen below the Bank of England's target of 2% for the first time since November 2009, dropping to 1.9% on year in January from 2% in December and undershooting consensus that was also 2%.
On month, CPI exhibited deflationary tendencies, declining 0.6% vs a rise of 0.4% previously and consensus of -0.5%.
Core CPI +1.6% on year vs +1.7% and +1.9%.
The fall in inflation was due to lower prices for recreational goods & services, furniture & household goods and alcoholic beverages & tobacco. These factors were partially offset by increases for miscellaneous goods and services. (PR)
Factory output prices (PPI) fell 0.3% on month vs flat and +0.1%. (PR)
The pound slides vs the dollar and is -0.3% at $1.6664, while the FTSE 100 is -0.2%.