New data from the Office of National Statistics has revealed that inflation in the UK has jumped to its highest level since June 2014, with rising fuel costs and the weaker pound key factors in the higher inflation figures.
At 1.8 per cent the CPI data came in slightly below analyst expectations of a 1.9 per cent rise, but the figure is edging ever-closer to the Bank of England’s 2 per cent target. The central bank’s forecasts suggest inflation will rise above 2.7 per cent within a year, largely due to rising import costs.
Commenting on the latest inflation data, Danske Bank Economist, Conor Lambe, said:
“Today’s data shows that the inflation rate moved closer to the Bank of England’s two per cent target.
“Inflation increased from 1.6 per cent in December to 1.8 per cent in January. This was partly due to rising fuel prices and less downward pressure coming from food prices.
“With input prices paid by UK manufacturers and output prices received by manufacturing businesses on the up, consumer price inflation is likely to rise further over the months ahead.”
