Inflation rises slightly

Inflation rose 0.7% in the 12 months to January, up from December's 0.6% CPI (Consumer Prices Index), according to the ONS. RPI (Retail Prices Index) increased slightly, from 0.6% to 0.7%.

CPIH (Consumer Prices Index including owner occupiers’ housing costs) rose 0.9% over the same period, up from 0.8%.

According to the ONS, furniture and household goods, restaurants and hotels, food, and transport had the largest upward contributions to the change in the January 2021 12-month rate, while falling clothing and footwear prices had a downward effect.

Commenting on the figures, TUC general secretary Frances O’Grady said: “With inflation remaining low, the chancellor must drive our recovery forward with investment and stimulus at the budget.

“He must start with extending full furlough to the end of the year to keep jobs safe. Major investment in support of job creation is needed too, especially green industries."

https://www.ons.gov.uk/releases/consumerpriceinflationukjanuary2021

https://www.tuc.org.uk/news/inflation-low-chancellor-must-stimulate-economy-budget-says-tuc