Inflation jumps to 1.8% in January: ONS
UK CPI inflation has rebounded to 1.8% in January, after falling to a three-year low of 1.3% in December, the latest statistics from the ONS show.
"Policymakers at the Bank of England will breathe a sigh of relief that inflation is reapproaching target."
CPIH inflation - the ONS' headline measure which includes owner occupiers’ housing costs - also rose to 1.8% in January, from 1.4% in December 2019.
The largest contribution to the CPIH 12-month inflation rate in January came from housing, water, electricity, gas and other fuels.
Ayush Ansal, chief investment officer at Crimson Black Capital, commented: “Few saw this inflationary curveball coming. “A rise was priced in but for inflation to surge by so much in just one month will have caught Pound watchers by surprise.
“In just a month the doves at the Bank of England have gone from driving seat to back seat. With the chances of an interest rate cut now negligible, the Pound will inevitably benefit.
“Policymakers at the Bank of England will breathe a sigh of relief that inflation is reapproaching target.”
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
Lloyds
Lloyds Banking Group launches £5,000 deposit mortgage
Mortgage Rates
Barclays relaunches sub-4% mortgage rate
Bank Of England
Bank of England holds interest rates at 3.75% in 8-1 vote
FCA
FCA bans and fines director £755,000 for advice and insurance failures
Mortgages
Mortgage affordability at tightest level since 2008: UK Finance
Nationwide
Nationwide cuts mortgage rates by up to 0.36%
