The UK Consumer Prices Index (CPI) annual inflation rate rose to 4 per cent in January, up from 3.7 per cent in December.
The steady increase will add further pressure on the Bank of England to stem demand-pull inflation and interest rates to ease inflationary pressure.
Retail Prices Index (RPI) inflation – which includes mortgage interest payments – rose to 5.1 per cent from 4.8 per cent.
Inflation, fuelled by rising oil, commodity and food prices, has now remained above the 2 per cent target by one percentage point or more for 14 months.
Until now, the Bank has been confident that the pick-up in the inflation rate would be temporary, with no need for an interest rate increase in the near term.
However, it may now have to adopt a harder stance.
The Bank’s inflation report on Wednesday, jobs figures the same day, and retail sales figures on Friday, will be closely watched.
