UK CPI inflation has rebounded to 1.8% in January with the biggest increases in coming from housing, water, electricity, gas and other fuels.
CPIH inflation , the ONS’ headline measure which includes owner occupiers’ housing costs – also rose to 1.8% in January, from 1.4% in December 2019.
“The rise in inflation is largely the result of higher prices at the pump and airfares falling by less than a year ago. In addition, gas and electricity prices were unchanged this month, but fell this time last year due to the introduction of the energy price cap,” said Mike Hardie, the ONS’s head of inflation.
Energy regulator Ofgem introduced the first cap on energy bills on 1 January last year, promising savings for many customers. The introduction meant that the average household on a default energy tariff could be charged no more than £1,137 per year for their gas and electricity.