Inflation grows to highest rate in 6 months

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Inflation grows to highest rate in 6 months
January inflation was not only the highest it has been for 6 months, but also ahead of the 1.6% that experts were predicting.
// Consumer Price Index in January grew to 1.8% in January, compared to 1.3% in December, according to ONS inflation figures
// Retail Price Index was 2.7% in January, up from 2.2% in December

The basket of goods that average UK households buy has increased faster than expected after inflation increased to the highest rate in six months.

The latest data from the ONS shows that the rate of the Consumer Price Index (CPI) increased to 1.8 per cent in January, up from 1.3 per cent in December.

This is not only the highest inflation has been for six months, but also ahead of the 1.6 per cent that experts were predicting.


READ MORE: Shop price deflation eases in January


“The rise in inflation is largely the result of higher prices at the pump and airfares falling by less than a year ago,” ONS head of inflation Mike Hardie said.

“In addition, gas and electricity prices were unchanged this month, but fell this time last year due to the introduction of the energy price cap.”

CPIH, the measure which includes housing costs, was also 1.8 per cent in January, up from 1.4 per cent in December.

Meanwhile the Retail Price Index (RPI), which is used by the government to set train fares, was 2.7 per cent in January, up from 2.2 per cent in December.

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