The UK’s inflation rate rose 3% year-on-year in January, up from 2.5% in the previous month.
Core inflation, which excludes volatile food and energy prices, increased by 3.7%, while service sector inflation surged above 5%. This could prompt the Bank of England to delay cutting interest rates.
However, investors expect the economy to grow by 2.8% in 2024, a figure significantly above the Bank of England’s 2% target.
Source: Fxstreet