UK inflation jumps to 3%, reducing chance of early interest rate cut

<p>Annual CPI inflation rate hit 10-month high in January in blow to ministers amid rise in food bills and fuel costs</p><ul><li><a href="https://www.theguardian.com/business/2025/feb/19/bank-of-england-faces-bumpier-road-after-inflation-accelerates">Analysis: Bank of England faces bumpier road after inflation accelerates</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></p><p>UK inflation accelerated faster than expected at the start of this year, eating into workers’ wages and reducing the chance of an interest rate cut next month.</p><p>The consumer prices index (CPI) measure rose to 3% in January, the Office for National Statistics reported, up from 2.5% in December.</p> <a href="https://www.theguardian.com/business/2025/feb/19/uk-inflation-increases-rising-prices-squeeze-households">Continue reading...</a>