Inflation still rising

Inflation rose unexpectedly in the 12 months to January. RPI inflation (the preferred measure of union negotiators) is now at 3.6% (up from 3.5%), while CPI inflation is at 3% (up from 2.5%).

Rising food and transport costs were the main contributors pushing up prices to a 10-month high.

The Bank of England is forecasting them to rise even more quickly (CPI at 3.7%) by the middle of the year due to higher energy prices.