Inflation rises to a high not seen in nearly a year – official figures
Inflation has risen a surprising amount to the highest in nearly a year, official figures show.
This means prices are rising even more than at any time since last March, according to data from the Office for National Statistics for January.
The consumer price index (CPI) ticked up steeply to 3% from 2.5% a month earlier.
A lower rise to 2.8% was forecast by economists polled by Reuters.
The rise has come from more expensive transport and food and non-alcoholic beverages costs.
What does it mean for interest rates?
Inflation is now higher above the Bank of England’s 2% target and will likely make the interest rate cuts less likely.
But there are some signs that could be welcomed by the rate-setters at the Bank.
Coming in below forecast was services inflation, impacted by rising wages, that rose to 5%, rather than the anticipated 5.2%.
The closely wathched core inflation measure – which excludes volatile food and energy prices – increased as expected to 3.7%, up from 3.2% in December.
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