Headline YoY inflation rose in January to 4.9% from 4.5% (see chart pack for details). The ex-volatile series, on the other hand, declined to 4.2% from 4.3%, as the January MoM print of 0.6%, while unseasonably high, was below the January 2024 print. Electricity prices remain a key contributor to overall inflation. In January, electricity added 33bp to the MoM print and 129bp to the YoY. Inflation expectations are still relatively well anchored, with two-year-ahead inflation expectations at the 3% target and 1Y likely to trend lower as the electricity price contribution fades.
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