UK inflation jumps in biggest monthly increase since 2012

The rise was fuelled by higher clothing, food & drink and air transport costs, according to the Office for National Statistics. Clothing and footwear costs contributed almost half of the monthly increase. Economists had expected the index to rise to 1.6% this month, but the 0.4 percentage point rise represents the largest monthly increase since October 2012. The increase takes CPI inflation back to the level seen in January 2014, though it remains well below the average level of 2.5% seen in 2013 and under the Bank of England’s 2% target. Sterling rose from $1.707 to above $1.714 followi...