Consumer prices rose by 0.1% m/m, while core prices remained flat at 0.0% m/m. Annual consumer price inflation was in line with expectations at 2.6%, while core inflation came in slightly below expectations at 3.5% y/y.
Services inflation rose to 5.0% y/y from 5.0% the previous month, indicating continued stabilisation in the sector. This sustained level of services inflation could influence the Bank of England’s thinking on monetary policy, despite signs of easing in other price components.