UK inflation stuck at its highest level for almost six years last month, continuing the squeeze on household budgets.
The consumer prices index (CPI) held steady at 3% in January for the second month running, according to the Office for National Statistics, confounding economists’ expectations that the rate would fall to 2.9% as the effects of the post-EU referendum drop in the pound begin to fade.
The reading comes after the Bank of England stoked speculation about a rise in interest rates from as early as May by suggesting last week that it would need to increase the cost of borrowing somewhat earlier and to a greater extent than previously expected. The figures show CPI sticking stubbornly above the Bank’s target rate of 2% set by the government.
via The Guardian