The U.K.’s inflation rate remains in double figures with the headline rate 10.1 percent in the year to January — a drop from the 10.5 percent recorded a month ago.
The slight drop mainly reflected price changes in the transport division, particularly for passenger transport and motor fuels.
There were also downward effects from restaurants and hotels, with the largest, partially offsetting, upward effect coming from alcoholic beverages and tobacco.
Whereas housing and household services (mainly from electricity, gas, and other fuels), and food and non-alcoholic beverages continue to maintain upward pressure on the rate
Alpesh Paleja, CBI Lead Economist, said:
“Another fall in inflation over January suggests that the tide is turning on price pressures. But with inflation and pipeline cost pressures set to remain high this year, households and businesses are likely to feel the pain for a while yet. In particular, the continued strength in more domestic measures of inflation will keep alarm bells ringing at the Bank of England.
“Given the central role played by energy prices in driving inflation up over the past year, the government must use the upcoming Budget to deliver a home-grown, secure, low-cost and low-carbon energy system. Measures that boost green investment will not only help reduce exposure to volatility in global energy prices, but also deliver a sustainable path to reaching Net Zero.”
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