The data comes from ONS January data

CPI flatlines at 4.0% as inflation aims 'still on track'

The Office for National Statistics (ONS) has revealed that the Consumer Prices Index (CPI) has remained at 4.0% in the 12 months to January 2024, from the same time last year.

CPI fell by 0.6% on a monthly basis, the same amount as January 2023.

The CPI including owner occupiers' housing costs (CPIH) also rose by 4.2% in the 12 months to January 2024, the same as December 2023.

According to ONS, the largest upward contributor to CPIH and CPI came from housing and household services, while the largest downward contributor was from furniture and household goods.

Industry experts react to the latest ONS inflation data.

Andrew Montlake, managing director at Coreco:

“It says something when inflation figures that show no change are cheered — the latest set of figures will cause a collective sigh of relief from many.

“The rollercoaster ride down to the 2% inflationary target is still on track, and we may see some of the previous day’s increases in SWAP rates reverse once more.

“This may be enough to pause further rate rises for the time being but there are more internal and global factors that the markets and the BoE will be watching carefully, especially whether a tight labour market is starting to ease.”

Craig Fish, director at Lodestone Mortgages and Protection: 

“This is certainly unexpected, and positive news, but on its own it won't change the possibility that the BoE may hold rates higher for longer.

“Wages and employment data are just as important and if they look hotter than expected then an early rate cut is off the cards.

“The eyes of the MPC seem to be set on the Fed in the US, as it's likely that when they make their first move (which could be a while) its likely that the UK will, too.”

Michelle Lawson, director at Lawson Financial:

"This is a pleasant surprise when the forecasts were for an increase. With mortgage rates increasing over the past fortnight or so, we should hopefully see rates stabilise or even edge down slightly as confidence grows.

"It will be interesting to see how this is interpreted by the BoE at the next MPC meeting on 21st March — but overall, this could be a win for borrowers."





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