More Cost Push Inflation

Rising food and petrol prices pushed up UK inflation in January, figures show. Last month’s Consumer Prices Index (CPI) inflation figure rose to 2.2%, up from 2.1% in December. The rate is the highest since June 2007. The Retail Price Index (RPI), which includes mortgage interest payments, rose to 4.1% from 4% in December.

The Office for National Statistics (ONS) said that the largest upward pressure came from the price of fuel. Average petrol prices rose by 1.3p in January to stand at 103.9p per litre. Food prices also contributed to the rise in inflation, particularly fruit such as grapes and grapefruit, the ONS said. However, a number of factors helped to offset food and fuel increases, not least downward pressure on clothing costs and cut-price offers on the High Street aimed at luring consumers, analysts said.

The full text of the article can be found here.

Further Reading:

There is also an article on a similar line in today’s Telegraph.

You Tube clip, food inflation in China.