The provisional CPI was unrevised in the final report for January. Prices fell 0.7 percent on the month to put annual inflation at 1.6 percent, a tick down on the final December outturn and the joint weakest rate since last May.
The flash HICP was similarly unrevised and so still shows a 1.0 percent monthly decline and a 1.4 percent yearly rate, a 0.2 percentage point fall versus last time.
The main downward pressure on the monthly CPI change came from the usual seasonal factors. In particular, January sales saw the price of clothing and shoes fall 6.1 percent while package holidays were down fully 22.2 percent. Working in the other direction, household energy charges rose 0.5 percent and food and non-alcoholic drinks 0.8 percent. As a result, the core CPI, which excludes food and energy, declined 1.0 percent versus December which left its annual rate unchanged at 1.5 percent.
Underlying inflation has largely ignored the strengthening economic upswing so far but as labour markets continue to tighten, some upside creep still seems likely in 2018.