UK inflation rises to 0.7% in January despite clothes prices falling


UK inflation rose to 0.7% in January but the prices of clothes fell.

This is up from the 0.6% level of Consumer Prices Index (CPI) inflation recorded in December.

Analysts at the Office for National Statistics (ONS) said furniture and household goods, restaurants and food were the main reasons behind the rise.

A Reuters poll of economists had predicted the inflation rate to remain at 0.6%.

The inflation rate comes as figures last week showed Britain avoided a double-dip recession.

However, gross domestic product (GDP) still shrunk at its fastest rate in 300 years in 2020.

Jonathan Athow, deputy national statistician for economic statistics at the ONS, added: “Inflation rose slightly in January, with food prices increasing.

“Household goods also pushed up prices with less discounting this year on items such as bedding and settees.

“However, there were widespread January sales, with particular price cuts for clothing and footwear.”

More to follow…

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