According to the report from Office for National Statistics, the Consumer Prices Index (CPI) rose 0.7% in the 12 months to January 2021, up from 0.6% to December 2020. Economists had expected a 0.6% increase. On a monthly basis, CPI fell by 0.2% in January 2021, following a 0.3% rise in December 2020. Economists had expected a 0.4% decrease.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose 0.9% in the 12 months to January 2021, up from 0.8% to December 2020.

The largest contribution to the CPIH 12-month inflation rate came from recreation and culture (0.35 percentage points).

Furniture and household goods, restaurants and hotels, food, and transport had the largest upward contributions to the change in the January 2021 12-month rate, while falling clothing and footwear prices had a downward effect.

On a monthly basis, the CPIH fell by 0.1% in January 2021, following a 0.2% rise in December 2020.