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Consumer prices in the United Kingdom stood at 4 percent in January, unchanged from December and defying expectations of a renewed pick-up, data released by the Office for National Statistics showed Wednesday.
Analysts polled by Reuters ahead of the release had projected inflation to accelerate to 4.2 percent at the start of the year.
Core prices, which exclude volatile components of energy, food, alcohol and tobacco and are considered as a gauge for future inflation trends, rose by 5.1 percent, also unchanged from December.
Services inflation, which is more directly linked to domestic price pressures, accelerated to 6.5 percent in January, from 6.4 percent in December.
The sterling dipped against the dollar and the euro following the release of the data, in a sign that investors are speculating about earlier easing by the Bank of England.
Investors might get some insight into the Bank of England’s reading of recent data when Governor Andrew Bailey answers questions at the Lords Economic Affairs Committee in London later on Wednesday.
This article has been updated.
