UK inflation holds steady at 4% in January as lower food prices help offset higher energy costs
ABC News
Inflation in the U.K. held steady at 4% in January as lower food prices helped offset an increase in energy costs
LONDON -- Inflation in the U.K. held steady at 4% in January as lower food prices helped offset an increase in energy costs, official figures showed Wednesday.
The reading was better than expected as most economists expected inflation to rise modestly to around 4.2%.
The Office for National Statistics said the monthly drop in food prices of 0.4% was the first since September 2021.
Still, inflation remains double the Bank of England's target rate of 2%.
The Bank of England has managed to get inflation down from a four-decade high of more than 11%, by raising its main interest rate aggressively from near zero to 5.25%. It has held the rate there since August and there are hopes that cuts may soon be on the agenda.
