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| UK inflation rises in January as fuel price fall eases | |
| (35 minutes later) | |
| UK inflation edged up to a 12 month high in January, as a fall in petrol prices eased. | UK inflation edged up to a 12 month high in January, as a fall in petrol prices eased. |
| Inflation, as measured by the Consumer Prices Index, rose by 0.3%. It was helped by smaller falls in food and fuel prices than a year ago. | Inflation, as measured by the Consumer Prices Index, rose by 0.3%. It was helped by smaller falls in food and fuel prices than a year ago. |
| Annual inflation has been below the Bank of England's 2% target for two years, and last year it was zero. | Annual inflation has been below the Bank of England's 2% target for two years, and last year it was zero. |
| The BoE said earlier this month that it expected inflation to stay below 1% this year. | The BoE said earlier this month that it expected inflation to stay below 1% this year. |
| North Sea oil prices dropped to a 12 year low of $27.10 last month and have almost halved over the past 12 months. | North Sea oil prices dropped to a 12 year low of $27.10 last month and have almost halved over the past 12 months. |
| But the Office for National Statistics measure of fuels and lubricants costs was only 7.3% lower than in January 2015, the smallest drop since November 2014. | But the Office for National Statistics measure of fuels and lubricants costs was only 7.3% lower than in January 2015, the smallest drop since November 2014. |
| Continuing low inflation makes the chance of an interest rate rise in the near future unlikely. | Continuing low inflation makes the chance of an interest rate rise in the near future unlikely. |
| Few economists expect the BoE to raise rates before late this year at the earliest, and some analysts see a risk that the BoE could instead have cut to rates below the record low of 0.5% where they have been for almost seven years. | Few economists expect the BoE to raise rates before late this year at the earliest, and some analysts see a risk that the BoE could instead have cut to rates below the record low of 0.5% where they have been for almost seven years. |
| Financial markets do not currently expect interest rates to rise until the end of the decade due to concerns including a global economic slowdown and continuing low oil prices. | |
| Food and alcohol | |
| Food prices fell by 0.6% between December and January as opposed to a 1% fall a year earlier. | |
| Supermarkets have been engaged in a long-running price war, and discounters such as Aldi and Lidl continue to take market share from the "big four" supermarkets - Tesco, Aldi, Sainsbury's and Morrisions. | |
| But the ONS said alcohol prices rose 5.2% between December and January, with spirits increasing by 7.5%, beer climbing by 3.6%, and wine up 4.8%. |