UK inflation jumped in January, according to new figures from the Office for National Statistics (ONS).
Measured by the Consumer Prices Index (CPI), inflation came in at 3% in the 12 months to January, up from 2.5% in December, and above expectations (2.8%).
The largest upward contribution to the change came from transport, and food and non-alcoholic beverages; the largest downward contribution came from housing and household services.
Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, stood at 3.7% in the 12 months to January, increasing from 3.2% in December and in line with expectations.
Martin Sartorius, Principal Economist, CBI, said: “The stronger-than-expected rise in inflation in January highlights the challenges facing the Monetary Policy Committee as they seek to rein in persistent price pressures. Higher energy prices, strong wage growth, and the impact of Autumn Budget measures are likely to keep inflation above target this year.
“While we still expect a gradual, quarterly pace of rate cuts throughout 2025, this inflation surprise raises the possibility that the MPC might tread even more carefully as it looks to reduce borrowing costs.”
