UK inflation increased sharply in January, hitting 3%, its highest rate since March 2024, creating cause for concern about the UK’s macroeconomic outlook.
According to data from the Office for National Statistics (ONS), the UK Consumer Prices Index (CPI) came in 0.2 percentage points above the 2.8% figure forecast by economists polled by Reuters. ONS chief economist Grant Fitzner said "the rise was driven by air fares not falling as much as we usually see at this time of year, partly impacted by the timing of flights over Christmas and New Year", making last month the weakest January dip since 2020. Also driving this spike was an increase in the cost of food and non-alcoholic beverages, which shot up 0.9% in January, having fallen 0.4%...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
