Inflation rate dips

Cheaper clothing and footwear along with falling transport costs helped cut inflation in January. The Retail Prices Index rose by 3.2% compared to 3.5% the previous month.

The government's preferred measure - the Consumer Prices Index, which excludes housing costs - was steady at 1.6%. This means that inflation is still running at less than the Bank of England's monetary policy committee's target of 2.0%.