AFP reports the Consumer Prices Index jumped to 3.0 percent in January, up from 2.5 percent in December, according to the Office for National Statistics (ONS).
“The rise was driven by air fares not falling as much as we usually see at this time of the year,” noted Grant Fitzner, chief ONS economist.
“After falling this time last year, the cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals,” he added.
New taxes on private schools announced in the government’s maiden budget led to an increase in tuition fees at the beginning of the year which also contributed to rising prices while directly impacting families.
The figure pushes inflation away from the Bank of England’s two percent target.
The central bank in February slashed its forecast for UK economic growth and warned that inflation would rise more than expected this year.
“Should the spike in inflation peak at a level above expectations, or if the increase is too prolonged, then the Bank could find itself with a nasty headache,” said Richard Carter, an analyst at Quilter Cheviot.
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