UK CPI declines more than expected in January

The cost of living in the UK decreased sharply at the start of the year, weighed down by declines in the prices for clothing and footwear and those for furniture and household equipment.

The consumer price index retreated by 0.8% month-on-month in January and increased by 0.3% year-on-year, according to the Office for National Statistics.

Economists had penciled in a fall of 0.7% on the month and a 0.3% rise year-on-year.

In terms of the monthly comparison, the largest falls were seen in the prices of clothing and footwear (-3.1%), furniture and household equipment (-2.5%) and transport (-2.0%).

Core-inflation, defined as the CPI minus energy, food, and alcoholic beverages fell by 1.0% over the month, with the year-on-year rate of increase sliding from 1.4% to 1.2%.

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