ONS SAYS INFLATION WAS 3.0% IN JANUARY – The Bank of England expects consumer price inflation to peak at 3.7% in the third quarter of this year
Inflation sped up to an annual rate of 3.0% in January from 2.5% in December, official figures have shown.
Economists polled had pointed to a reading of 2.8% in January, the same as the Bank of England’s forecast.
The Bank of England expects consumer price inflation to peak at 3.7% in the third quarter of this year – almost double its 2% target – driven mostly by higher energy costs and regulated tariffs for household utility bills and bus fares.
But Bank of England Governor Andrew Bailey and his colleagues say a slowdown in the jobs market is likely to keep a lid on higher wage demands this year after an acceleration in late 2024, limiting the risk of a build-up of inflation pressure.
