UK inflation rose more than expected to a 10-month high of 3 per cent in January, highlighting the challenge for the Bank of England as it contends with persistent price pressures and a weakened economy.
The annual rate of price growth was above the 2.5 per cent recorded in December and the 2.8 per cent forecast by economists polled by Reuters, the Office for National Statistics said on Wednesday. It was also well above the recent low of 1.7 per cent in September.
The increase was driven by airfares dropping less than is usual in January, higher costs for private schools after the government imposed VAT on fees and higher costs for food and non-alcoholic drinks, the ONS said.
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