UK inflation reached 10-month high in January
UK inflation rose more than expected, hitting a 10-month high of 3.0 percent in January and is expected to continue rising in the near future, Reuters reports
The Bank of England and economists polled by the news agency expected inflation to rise to 2.8 percent after December’s 2.5 percent figure.
The Office for National Statistics said the price rise in January was mainly due to a smaller-than-usual decline in airfares – a volatile component that drove inflation down in December – and a rise in motor fuel prices. Food prices also rose, and another factor was an increase in public school fees following PM Keir Starmer’s decision to charge value added tax on them.
“Overall prices, which play a major role in the debate at the Bank of England over how quickly to cut interest rates, rose sharply to 5.0 percent from 4.4 percent, but were less than the 5.2 percent that economists had expected,” the publication reads.
