Inflationary pressures 'far from tamed' as CPI comes in higher than expected at 3%

Highest figure since March 2024

UK inflation increased sharply in January, hitting 3%, its highest rate since March 2024, creating cause for concern about the UK’s macroeconomic outlook.

According to data from the Office for National Statistics (ONS), the UK Consumer Prices Index (CPI) came in 0.2 percentage points above the 2.8% figure forecast by economists polled by Reuters. Chief economist at the ONS, Grant Fitzner, said "the rise was driven by air fares not falling as much as we usually see at this time of year, partly impacted by the timing of flights over Christmas and New Year", making last month the weakest January dip since 2020.  Bank of England slashes interest rates by 25bps to lowest level in 18 months Also driving this spike was an increase in the co...