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UK inflation is at its highest in more than a year - but it's still just 0.3%

Feb 16, 2016, 15:05 IST

A giant inflated beach ball sits on the sand at Blackpool Beach in Blackpool, northern England August 15, 2014. The ball was inflated to a height of 16.6 meters on Friday, beating the previous world record of 15.8 meters.REUTERS/Andrew Yates

UK inflation came in at 0.3% for January, according to official figures released on Tuesday.

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The Office for National Statistics says the consumer price index - the key measure of inflation - increased from 0.2% in December, to 0.3% in January. That was bang in line with economists' forecasts.

The month-on-month figure was slightly disappointing, falling by 0.8%, a little more than the 0.7% fall expected by economists.

The year-on-year figure, the most watched measure, represents its highest level in more than a year. Prior to the last couple of months, inflation had stayed between -0.1% and 0.1% for 10 months due to a collapse in oil prices and a supermarket price war that has led to slashed prices.

Here's the inflation picture over the past decade:

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ONS

Interestingly, the ONS says that "transport costs, food and non-alcoholic beverages and (to a lesser extent) recreational and cultural goods and services had a downward pull on the rate of inflation."

The ONS says that inflation enjoyed an "upward pull from price movements for other goods and services, most notably restaurant and hotel bills, and education costs such as university tuition fees."

Despite the acceleration in inflation in January, it remains well below the Bank of England's 2% target.

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