🇬🇧❗️Cable FX Macro Weekly Note: U.K. December Consumer Prices

**As seen in Risk In The Week report 01/12/24, subscribe at cablefxm.co.uk/reports

U.K. headline prices extended the prior slowing trend, the print came in at 3.9% Y/y vs the prior 4.6% and the consensus median of 4.3%. The headline is now rising at the slowest level since September 2021, the largest negative contributions came from transport prices and household equipment (the latest Rightmove data print showed U.K. house prices contracting on the year). November services prices eased to 6.3% Y/y from the prior 6.6%, the figure missed economists’ expectations of 6.6%, this component has been in focus at the BoE. The core metric eased from 5.7% Y/y to 5.1%, this was below market expectations. Economists at ING said that +6.0% U.K. services prices remain too high, however, they expect them to slow down towards 4.0% by the summer on lower goods prices while petrol is seen declining further. ING expects the BoE to start easing by August and warned that faster-than-expected services CPI and easing wages could push the date forward.