Inflation sees big increase

Government-imposed increases in VAT and fuel duty aided a big jump in inflation. Under the Retail Prices Index (RPI), the rate of inflation was 5.1% in January against 4.8% in December 2010.

Under the Consumer Prices Index (CPI), inflation was up to 4.0% from 3.7% the previous month. This measure does not include housing costs and is the measure used by the coalition to update state benefits and public sector pensions.