Consumers to 'feel the pinch' as inflation climbs 1.8% in January

Up from 1.6% in December

Natalie Kenway
clock • 4 min read

UK inflation reached a two-year high of 1.8% in January, nearing the Bank of England's 2% target, as fuel prices continued to climb higher.

Sterling fell almost 0.5% after it was revealed the UK Core Price Index (CPI) hit 1.8% in January, according to the Office for National Statistics, as rising fuel and food prices hit the consumer. The pound was down 0.49% against the US dollar to $1.2640 following the announcement, while the FTSE 100 was flat at 7,282.5 points. January's inflation figure was a move higher from the 1.6% reached in December 2016, and the highest rate since June 2014 when CPI reached 1.9% and then began to fall back towards zero. In a briefing note, the ONS said: "The strong downward pull on inflation...

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