In January, annualised inflation surged to 3.0%, up from 2.5% in December, surpassing forecasts of 2.8%. Core inflation also increased significantly, reaching 3.7%, which aligns with market expectations yet signals ongoing inflationary pressures. The rise in inflation is largely attributed to higher costs in transport, particularly motor fuels and airfares, alongside a year-on-year increase of 3.3% in food and non-alcoholic drinks. This inflationary trend, along with increases in council tax and housing costs, intensifies the financial strain on households and leaves little room for the Bank of England to consider interest rate cuts soon.
Annualised inflation rose significantly in January to 3.0%, prompting expectations of interest rate increases by the Bank of England.
Core inflation's rise to 3.7% underscores persistent inflationary pressures, impacting consumer budgets amidst increasing transport and housing costs.
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