Inflation rises to 3% as it hits highest rate in 10 months - how it affects you

dailyrecord.co.uk:

UK inflation rose to 3 per cent in January - its highest level in ten months.This is up from the 2.5 per cent that was recorded in December and means inflation is continuing to edge higher above the 2 per cent target the Bank of England is aiming for.

Most economists had expected inflation to rise to 2.8 per cent. Inflation fell to 1.7 per cent last September, its lowest level in three years, but started to rise again in October after energy bills went up.The Bank of England predicts inflation could reach 3.7 per cent this autumn.

The Office for National Statistics (ONS) releases inflation data each month and blamed the rise on higher air fares and private school fees.

Core inflation - which excludes energy, food, alcohol and tobacco, and is closely watching by the Bank of England - rose from 3.2 per cent to 3.7 per cent, reports the Mirror.Grant Fitzner, chief economist at the ONS said, said: “Inflation increased sharply this month to its highest annual rate since March last year.