The higher-than-expected rise in the rate of inflation underlines the real challenges businesses face, according to the British Chambers of Commerce (BCC).
The consumer prices index (CPI) measure of inflation rose to 3% in January, up from 2.5% in December, according to the Office for National Statistics (ONS).
Economists had expected inflation to rise to 2.8% in January.
The increase was driven by rises in the prices of air fares, food and non-alcoholic drinks and private school fees,added the ONS.
The data underlines the inflationary pressures in the economy right now and the ‘real challenges businesses are facing’, said Stuart Morrison, Research Manager at the British Chambers of Commerce.
He continued: ‘Firms are having to deal with significant cost burdens which threaten to fuel inflation further. Within weeks they’ll be facing the hikes in national insurance contributions and the minimum wage.
‘The inflation landscape, coupled with ongoing global risks and the looming threat of US tariffs, is likely to give the Bank of England more food for thought, as it charts a cautionary path to further interest rate cuts.
‘Businesses are crying out for cost-pressures to be eased so that they can invest, recruit and trade – driving forward the economic growth we all want to see.’
Internet link: ONS website
