Latest inflation figures show increase in January

UK inflation rose to a 12 month high in January, with the increase blamed on an easing of petrol prices.

Latest figures from the Office for National Statistics showed inflation hot 0.3% last month.

This is the third consecutive month of small increases, meaning that the rate is now the same as it was in January 2015.

Most goods and services will have some impact on the 12-month rate each month, pushing it higher or lower. It is the balance between the upward and downward pressures that determines the overall change.

This month, the main upward pressure came from motor fuels, with smaller contributions from food, alcoholic beverages and clothing. Air fares made the largest downward contribution, but the ONS said it was important to note that air fares were highly variable. They typically drop in January following increases in December, with the increase in December 2015 being the largest December rise since 2002.

With fuel prices continuing to fall, the ONS said it might seem puzzling that they could be pushing the inflation rate up. The reason for this is that, although prices continued to fall in January, they fell by less than they did in January last year.