UK inflation edges to year high in January despite tumbling oil prices

Third consecutive month of increases

UK inflation hit its highest level in 12 months in January, increasing by 0.3% year-on-year, but is still way off the Bank of England's 2% target.

The Office for National Statistics (ONS) said the 0.3% increase in the Consumer Prices Index (CPI) last month is the third consecutive rise and comparable to the 0.2% rise seen in December. Motor fuels were the largest contributor and, to a lesser extent food, alcoholic beverages and clothing. With the oil price at multi-year lows, the ONS noted it may seem "puzzling" that fuel prices had pushed inflation up, but prices fell by less in January than last year. UK inflation beats expectations with 0.2% rise in December "Last year, prices began to rise in March, following large fall...