United Kingdom: Inflation comes in at highest level since March 2024 in January
Latest reading: Inflation came in at 3.0% in January, up from December’s 2.5%. January’s figure was the highest inflation rate since March 2024 and was above market expectations. Looking at the drivers of the release, prices for food plus recreation and culture rose at a quicker rate in January, and prices for transportation rebounded. Meanwhile, core inflation rose to 3.8% in January from the previous month’s 3.2%.
On the flipside, services inflation—a closely watched metric by the Bank of England—came in lower than forecast.
Finally, consumer prices fell 0.11% in January over the previous month, swinging from the 0.30% rise recorded in December.