UK inflation in January rose to a six-month high as petrol and house prices rose, official figures show. The Consumer Prices Index (CPI) stood at 1.8% last month, up from 1.3% in December, the Office for National Statistics said.
“The rise in inflation is largely the result of higher prices at the pump and airfares falling by less than a year ago,” the ONS said. The rise is ahead of economists’ CPI forecast of 1.6% in January.
CPI remains below the Bank of England’s 2% target for inflation. Wednesday’s inflation data pushed the value of the pound above $1.30. Versus the euro, the pound had started the day down 0.25% but rose back to trade flat against the single currency.
However, some analysts said that the new figures were unlikely to “move the dial” on the central bank’s next decision on interest rates in March.
Mike Hardie, head of inflation at the ONS, said: “The rise in inflation is largely the result of higher prices at the pump and airfares falling by less than a year ago. In addition, gas and electricity prices were unchanged this month, but fell this time last year due to the introduction of the energy price cap.”
Fuel prices were up 4.7% compared with a year earlier, marking the biggest rise since November 2018. Energy regulator Ofgem’s cap on energy bills meant that the average household could not be charged more than £1,137 annually for their gas and electricity.
The ONS also said that annual house prices rose across all regions of the UK, the first time this has happened in nearly two years.
Source: bbc.com
