UK INFLATION has 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 helped push inflation higher.
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.
It was higher than predicted by analysts, who had forecast a rate of around 2.8%.
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.
“After falling this time last year, the cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals.”
Bank of England forecasters have predicted that inflation will continue to rise to 3.7% later this year due to energy prices and a several utility bill increases add to business and household costs.
A rise in inflation will come as a blow to The Government, as the CPI dropped from 2.6% in November to 2.5% in December.
Earnings growth edged up to 6% including bonuses in December, giving workers a real-terms pay rise of 3.5%. However, real disposable incomes are expected to feel a continual squeeze as pay rises are due to track down this year while inflation increases.
Workers in the public sector achieved a 4.7% pay increase in December, falling short of 6.2% rise in the private sector.
This comes amid a backdrop of falling living standards despite partial economic growth, recent data revealed.
