UK inflation comes in softer than expected, with utilities and transport leading the way.

The UK's inflation figure for January was flat year over year at 4%, 20 basis points less than anticipated at 4.2%.

Additionally, core inflation, which takes variable expenses like food and energy out of the picture, came in somewhat lower than anticipated at 5.1% as opposed to 5.2%.

This indicates that both measures were constant from December, which was in proximity to the two-year low of 3.9% observed in November.

Housing and utility prices fell by a moderate 2.1% as opposed to a more dramatic 3.4% decline in December, led by increases in gas and electricity rates.

Transport expenses also decreased, falling by just 0.3% after falling by 1.1% earlier.

In the meantime, the cost of other products and services increased more quickly, by 4.5%, compared to the previous 4.3%.

The cost of food and non-alcoholic drinks simmered down to 6.9% from 8.0%, while inflation for furniture and home items dropped considerably, cooling to 0.4% from a scorching 2.5%.

Despite being a better-than-expected outcome overall, the Bank of England's obstinate rates policy is unlikely to change much because 4% is still double the bank's target inflation rate of 2%.

(Sources: investing.com, proactiveinvestors.co.uk)