Investors eye inflationary surge as CPI dips 0.2% in lockdown January

Lockdown outlook set to guide inflationary path

UK inflation fell by 0.2% in January on the back of the reintroduction of lockdown restrictions, having risen by 0.3% in the previous month, with investors now awaiting updates on the path out of lockdown expected from the Government next week for an indication of the inflationary outlook.

Figures published by the Office for National Statistics (ONS) on Tuesday (17 February) show that CPI rose 0.7% in the 12 months to January 2021, up from 0.6% to December 2020. Return of the Lockdown Laggards? Investors eye 'Covid casualty' stocks to prepare for 'revenge spending' CPI including owner occupiers' housing costs (CPIH) rose 0.9% in the 12 months to January 2021, up from 0.8% to December 2020, and fell 0.1% on a monthly basis for January. The largest contribution to the CPIH 12-month inflation rate came from recreation and culture at 0.35 percentage points. Furniture, ho...