Bank of England faces bumpier road after inflation accelerates

<p>Tough route also awaits Rachel Reeves as households reel from sharp increase in living costs</p><ul><li><a href="https://www.theguardian.com/business/2025/feb/19/uk-inflation-increases-rising-prices-squeeze-households">UK inflation jumps to 3%</a></li><li><a href="https://www.theguardian.com/business/live/2025/feb/19/transport-food-costs-private-school-fees-push-uk-inflation-business-live">Business live – latest updates</a></li></ul><p>Andrew Bailey had warned there would be a bump in the road. But after inflation jumped by more than expected to 3% in January, the Bank of England governor could be in for a rockier ride than anticipated.</p><p>For the chancellor, <a href="https://www.theguardian.com/politics/rachel-reeves">Rachel Reeves</a>, too, it will be a tough road to travel having promised to achieve economic growth that can be “felt in people’s pockets” – amid the accusation Labour is leaving those pockets feeling lighter, not heavier.</p> <a href="https://www.theguardian.com/business/2025/feb/19/bank-of-england-faces-bumpier-road-after-inflation-accelerates">Continue reading...</a>