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UK inflation picks up in January Food and petrol push up inflation
(10 minutes later)
UK inflation picked up in January, official figures have shown. UK inflation picked up in January, driven by rises in food and petrol prices, official figures have shown.
Last month's Consumer Prices Index (CPI) figure - the government's preferred measurement - rose to 2.2%, up from 2.1% in December.Last month's Consumer Prices Index (CPI) figure - the government's preferred measurement - rose to 2.2%, up from 2.1% in December.
The biggest inflationary pressure was rising transport costs, the Office for National Statistics (ONS) said. The rate was the highest since June 2007 and the CPI measure remains above the government's target of 2%.
The Retail Price Index (RPI) inflation measurement, which includes mortgage interest payments, rose to 4.1% from 4% in December. The Retail Price Index (RPI), which includes mortgage interest payments, rose to 4.1% from 4% in December.
The Office for National Statistics (ONS) said that the largest upward pressure came from the price of fuel.
Average petrol prices rose by 1.3p in January to stand at 103.9p per litre.
Food prices also contributed to the rise in inflation, particularly fruit such as grapes and grapefruit, the ONS said.
Price pressures
The rise in the inflation rate was less than economists were expecting and could ease policymakers' concerns about rising prices.
"January's UK consumer prices figures suggest that, for now at least, retailers are largely absorbing the steep increases in costs seen over recent months in their profit margins," said Jonathan Loynes at Capital Economics.
Data on Monday had showed factory gate inflation rising at its strongest rate in more than 16 years.
"It will be some time yet before the MPC's inflation concerns evaporate," Mr Loynes said.
"Nonetheless, there is some encouragement here that weaker demand is doing the job of containing price pressures," he added.
The Bank of England cut interest rates to 5.25% last week to boost growth but said it was concerned about inflation.