UK CPI in line with expectations, 2019 growth downgraded - Scotiabank

Analysts at Scotiabank explained that the UK CPI rose 3.0% y/y in Dec, down a tenth from 3.1% in Nov, in line with expectations. 

Key Quotes:

"Core inflation dipped a tenth as well to 2.5% but that was a little better than forecast (for 2.6%). 

Government house price data suggest that the modest lift to prices nationally in the past few months is extending (+5.1% y/y, down slightly from an upwardly revised +5.4%) while London house price growth remains soft (+2.3%)."

"UK forecasters expect the UK economy to growth 1.6% this year and revised the 2019 outlook down slightly to 1.4%, according to Bloomberg. 

The GBP rose modestly against the softer EUR earlier and is trading a little more defensively against the stronger USD."