Research Team at ANZ, notes that the UK’s January CPI was slightly weaker than expected, falling 0.8% m/m, driven by the plunge in oil prices. Key Quotes “But as the fall was less than in January 2015, the annual rate edged up to 0.3% (vs +0.2%) and it was the third consecutive month above zero. Food and non-alcoholic drinks fell 0.3% y/y, reflecting the ongoing competition between in the supermarket sector. Transport prices also fell 0.4% y/y as airline prices dropped (energy related). That helped to restrain core inflation, which rose 1.2% y/y vs 1.4% y/y in December. Essentially, low inflation and its persistent undershoot remains largely an energy price story.” For more information, read our latest forex news.