UK inflation jumps to 10-month high of 3%

UK inflation jumped to its highest level for 10 months in January, according to new official figures.

Plane fares, rising food costs and a sharp jump in private school fees all contributed to higher living costs.

The rate of Consumer Prices Index (CPI) inflation rose to 3% in January from 2.5% in December, the Office for National Statistics (ONS) said.

Consumer Price Index (CPI) rose by 3.0% in the 12 months to January 2025, up from 2.5% in December 2024.

Read the full article ➡️ https://t.co/qSPpfIkqF9 pic.twitter.com/MTp1HLq0jS

— Office for National Statistics (ONS) (@ONS) February 19, 2025

It was higher than predicted by analysts, who had forecast a rate of around 2.8%.

The sharp increase will add to pressure on policymakers at the Bank of England to consider further interest rate cuts in their bid to keep inflation around their 2% target rate.

ONS chief economist Grant Fitzner said: “Inflation increased sharply this month to its highest annual rate since March last year.

“The rise was driven by air fares not falling as much as we usually see at this time of year, partly impacted by the timing of flights over Christmas and New Year. This was the weakest January dip since 2020.

The cost of raw materials fell 0.1% in the year to Jan 2025, compared to a revised fall of 1.3% in the year to Dec 2024.

Meanwhile, factory gate prices rose 0.3% in the year to Jan 2025, up from a revised fall of 0.1% in the year to Dec 2024.

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— Office for National Statistics (ONS) (@ONS) February 19, 2025

“After falling this time last year, the cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals.”

The price of meat and bread both increased by 2.3% year-on-year, according to the figures.

Inflation was also pushed higher by higher private school fees, following the Labour Government’s move to apply 20% VAT to private school education and boarding fees.

Commenting on today’s inflation figures for January 2025, ONS Chief Economist Grant Fitzner said: (Quote 1 of 2) 💬 pic.twitter.com/yAyP1D5OwL

— Office for National Statistics (ONS) (@ONS) February 19, 2025

The data showed that many schools passed on significant price increases to parents as a result, with private school fees up 12.7% year-on-year.

The education sector as a whole saw inflation at 7.5% as a result – the highest rate since September 2015.

Chancellor Rachel Reeves said on Wednesday her “number one mission” was getting “more pounds in pockets” after the ONS confirmed the rise in inflation.

“That’s why we’re going further and faster to deliver economic growth,” she said.

“By taking on the blockers to get Britain building again, investing to rebuild our roads, rail and energy infrastructure and ripping up unnecessary regulation, we will kick-start growth, secure well-paid jobs and get more pounds in pockets.”