Wed, 19 Feb 2025

Wed, 19 Feb 2025 Inflation jumps on food, air fares and school fees

The government admits that stemming price rises will be 'bumpy' as inflation hit 3% in January.

* UK inflation rose sharply to 3% in January, driven by increasing prices for food, air travel, and private school fees.
* The jump from 2.5% in December was higher than expected, and marks the fastest pace of price increases in 10 months.
* Food staples such as meat, eggs, butter, and cereals became more expensive over the past year, with some items like olive oil and lamb seeing significant price hikes (17% and 16% respectively).
* The rise in inflation comes ahead of predicted energy bill increases in April and water and council tax rises later this month.
* Some businesses are warning that higher pay and National Insurance rates will lead to increased prices for customers.
* A young mother, Gaby Cowley, spoke to the BBC about struggling to make ends meet due to rising food costs, which have almost doubled over the past three years.
* The government has warned that getting inflation back down to 2% target will be "bumpy", while economists are debating whether further interest rate cuts are necessary.
* Some experts believe the Bank of England may slow down its rate-cutting pace due to the unexpected jump in inflation, while others think it could lead to a change in course.
* The UK's economy is expected to face challenges in April, with some calling it "Awful April" due to predicted price rises and tax increases.
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