Inflation in the UK surged to the highest level for three decades in January as the impact of rising energy costs fed into the wider goods and services.
- The consumer prices index (CPI) rose to 5.5% in January from 5.4%, a month earlier, attributable to an increase in prices for clothing, footwear and furniture.
- On a monthly basis, consumer prices shrank by 0.1% slightly less than projected by economists in a Reuters poll. The annual figure was anticipated to remain at 5.4%
- The Consumer Prices Index including owner occupiers’ housing costs (CPIH) grew by 4.9% in the 12 months to January 2022, rising from 4.8% in December.
- Factory gate inflation also rose at a faster pace in January, signaling that consumers will struggle with further inflationary pain in 2022.
- Output prices jumped 9.9% in the year to January. That’s an increase of 9.3% in December.
Manufacturing firms also faced higher prices. Input costs increased by 13.6% per year, down from 13.8% in December 2021 due to rising energy and raw material costs.
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Source: Office for National Statistics
