UK inflation jumps to 3% - hitting ten-month high

UK inflation jumped to its highest level for ten months in January, according to new official figures.

Plane fares, rising food costs and a sharp jump in private school fees all helped push inflation higher.

The rate of Consumer Prices Index (CPI) inflation rose to 3% in January from 2.5% in December, the Office for National Statistics (ONS) said.

It was higher than predicted by analysts, who had forecast a rate of around 2.8%.

ONS chief economist Grant Fitzner said: “Inflation increased sharply this month to its highest annual rate since March last year.

“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. This was the weakest January dip since 2020.

“After falling this time last year, the cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals.”

Chancellor Rachel Reeves said: “Getting more money in people’s pockets is my number one mission.

“Since the election we’ve seen year on year wages after inflation growing at their fastest rate – worth an extra £1,000 a year on average – but I know that millions of families are still struggling to make ends meet.

“That’s why we’re going further and faster to deliver economic growth.

“By taking on the blockers to get Britain building again, investing to rebuild our roads, rail and energy infrastructure and ripping up unnecessary regulation, we will kickstart growth, secure well paid jobs and get more pounds in pockets.”