The UK rate of inflation unexpectedly remained unchanged at 4% in January, according to official figures.
Inflation, which measures how prices rise over time, stood at 4% in the year to January, said the Office for National Statistics.
It was the same as in December and came in below economists’ expectations, including the Bank of England. Economists had expected prices to rise by 4.1% compared to the same month last year.
Keeping prices rising was the energy price cap, which rose in January, bringing up the cost of gas and electricity.
The new energy price cap meant the typical annual household bill went up to £1,928, an increase of £94.
However, higher energy prices were offset by falls in the cost of furniture and household goods, and food and non-alcoholic drinks.
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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