Transport, food and non-alcoholic drinks were the main drivers behind the rise in inflation, according to the Office for National Statistics (ONS).
Food and drink prices rose by 3.3% in the year to January, compared to 2% in the year to December.
A smaller than expected decline in plane ticket costs didn’t help, according to ONS Chief Economist Grant Fitzner.
“Inflation increased sharply this month to its highest annual rate since March last year,” he said.
“This rise was driven by air fares not falling as much as we usually see at this time of year, partly impacted by the timing of flights over Christmas and New Year. This was the weakest January dip since 2020.”
Air fares tend to rise into December and fall into January, but there was weaker growth than usual in December, meaning they only fell by -19% last month compared to -38.9% a year ago.
“After falling this time last year, the cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals,” continued Fitzner.
“Private school fees were another factor, as new VAT rules meant prices rose nearly 13% this month.”
