Skip to main content

Modest slowdown in UK inflation

The cost of living crisis continues albeit at a marginally slower rate

18 January 2023

December’s UK CPI year-on-year print of 10.5% announced this morning was exactly in line with market forecasts and showed a modest slowdown from the previous month’s year-on-year rate of 10.7%; this is now the second consecutive month showing a slowdown. Before we start getting too excited though, prices are not going into reverse. Rather, they are fixing at a higher rate than a year ago, so the cost of living crisis continues albeit at a marginally slower rate. I cannot see how this will allow for a more dovish Bank of England rate decision next month and expect a continuation of a hawkish 50 bps hike.

Important legal information
The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.

Charles Hepworth

Investment Director
My Insights

Active Thinking

Fed wary of cutting US rates too quickly

Charles Hepworth

UK services sector continues to expand

Charles Hepworth

UK retail sales bounced back strongly in January

Charles Hepworth

Charles Hepworth Blog