Inflation ticks up again as Consumer Price Index rises to 5.5% in January

The rate of Consumer Price Index inflation has increased as the cost of living continues to have an impact.

Inflation increased to 5.5% in January, its highest rate since March 1992, from 5.4% in December, the Office for National Statistics has said.

The consumer price index (CPI) measure of inflation was in line with economists expectations – as clothing, housing, and furniture prices surged pushing the CPI rate of inflation higher.

The CPI measure of inflation is the rate at which the prices of goods and services bought rise or fall.

Grant Fitzner, chief economist at the Office for National Statistics (ONS), said: “Inflation ticked up again in January, reaching a near 30-year high.

“Clothing and footwear pushed inflation up this month and although there were still the traditional price drops, it was the smallest January fall since 1990, with fewer sales than last year. “The rising costs of some household goods and increases in rents also pushed up inflation.

“However, these were partially offset by lower prices at the pump, following record highs at the end of 2021.

“Some annual changes this year are affected by last year’s lockdown, when many services were unavailable.”

The Bank of England expects inflation to peak at about 7% in April, when Ofgem will increase its default energy tariff price cap.

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