After an unexpected spike to 3%, the Treasury warns of a "bumpy" route to lower

After an unexpected spike to 3%, the Treasury warns of a "bumpy" route to lower inflation.
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February 19, 2025 In the centre of a grocery aisle filled mostly with leafy greens, a woman examines a bag of lettuce. The rate increased from 2.5% to 3% in January, the highest level in ten months, and the Treasury warns the path to reaching the Bank of England's 2% inflation target will be "bumpy." Here's what else it implies for your money: on average, anything that used to cost £1 now costs £1.03. Food, airfare, and private school tuition contributed to today's number, which experts had projected would increase to 2.8%, according to the Office for National Statistics. Among the forces pushing upward were well-expected, but BBC correspondent Theo Leggett says the rise in food price inflation from 1.9% to 3.1% will undoubtedly raise concerns. Rachel Reeves, the chancellor, claims she is trying to "deliver economic growth," but the Conservatives believe she is "out of her depth" and the Liberal Democrats dub her ideas "misguided." Since reaching 11.1% in 2022, the highest rate in 40 years, inflation—the gradual rise in the price of something—has drastically decreased. Emily Atkinson is the editor for live reporting. Additional reading on the implications of today's inflation increase Adam Goldsmith, a live reporter Before we head out for an increasingly expensive cup of coffee, let's take a look at some broader reading to help you understand the potential implications of today's inflation increase: Our Explainer walks you through the basics of today's inflation increase, including how the price of everyday items like meat and eggs has increased over the past year. The fact that UK wages are still rising faster than inflation is some positive news. Some people may find this helpful in keeping up with price increases, but there are concerns that firms may reduce staff in anticipation of increased employment costs in April. Douglas Fraser of BBC Scotland briefly explained to us what the current statistics might indicate for house expenses.
Not a valid attachment ID.This comes as the ONS revealed that, in the year ending December 2024, home prices rose by 4.6%. Upcoming: As the government wants, will the Bank of England decide to lower interest rates? According to business journalist Theo Leggett, the crucial query will be whether the increase in inflation turns out to be short-term.

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