Release Explanation: The CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of Inflationary pressures. It is the most widely used Inflation indicator of Central Banks, Institutions, and Governments. It is used to calculate cost of living numbers for Government programs. Each regional central bank will have their own CPI target rate, and each will differ in line with the way they individually want to control the aspects of their own economies.

Trade Desk Thoughts: The U.K. Consumer Price Index moved slightly lower in January, to 3.0%, from 3.1% one month earlier. Even though the CPI declined at a record pace last month, this month the inflation gauge barely moved. In addition, the Core CPI, which excludes volatile items, actually rose to 1.3% from 1.1% last month. 

There was a large upward contribution from recreation and culture, furniture, household equipment, miscellaneous goods and services and also clothing and footwear. Downward pressure came from transport costs and housing and household services, once again. 
Retail Prices Index (RPI) inflation slowed to 0.1% in January, down from 0.9% in December. The main factors affecting the CPI also affected the RPI.

Forex Technical Reaction: The pound tumbled 160 pips ahead of the release, down to the 1.4150 support area. However, just before the release, the pound started to head higher, retracing almost half of the ground lost earlier.