The rate of inflation has remained at 4%, below expectations, official figures show.
The consumer price index measure of inflation stood at 4% in January, the Office for National Statistics (ONS) said.
It’s the same as in December and below economists’ expectations, including the Bank of England.
The central bank forecast a 4.1% rate while economists polled by Reuters were expecting a rise to 4.2%.
It’s likely a positive sign for the interest rate-setters in the Bank who have been raising interest rates, making borrowing more expensive, in an attempt to bring inflation down to 2%.
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In response to the latest data, Chancellor Jeremy Hunt said: “Inflation never falls in a perfect straight line, but the plan is working; we have made huge progress in bringing inflation down from 11%, and the Bank of England forecast that it will fall to around 2% in a matter of months.”
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