Treasury warns of 'bumpy' road to lower inflation after unexpected jump to 3% .

Treasury warns of 'bumpy' road to lower inflation after unexpected jump to 3% .
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A woman inspects a bag of lettuce in the middle of a grocery aisle that primarily contains leafy greens. Advertisement Summary The Treasury says the road to achieving the Bank of England's 2% inflation target will be "bumpy", after the rate rose from 2.5% to 3% in January - the highest level in 10 months It means that, on average, something that cost £1 a year ago now costs £1.03—here's what else it means for your money. Today's figure—which economists had predicted would rise to 2.8%—was driven in part by airfares, food, and private school fees, the Office for National Statistics says. Some of the upward pressures were well-anticipated, but the increase in food price inflation from 1.9% to 3.1% will be a definite concern, writes our correspondent. Theo Leggett Chancellor Rachel Reeves says she is working to "deliver economic growth"—but" the Lib Dems call her policies "misguided," while the Conservatives say Reeves is "out of her depth." Inflation—the increase in the price of something over time—has fallen significantly since hitting 11.1% in 2022, which was the highest rate for 40 years. 
Live Reporting .
House prices rose by 4.6% in the year to December published.
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Two women browse adverts for houses for sale in the window of an estate agent. Image source, PA Some more economic news for you now. The average UK house price increased by 4.6% to £268,000 in the year up to December 2024, according to data from the Office for National Statistics (ONS). In December, the average house price in England was £291,000, compared with £208,000 in Wales and £189,000 in Scotland. Meanwhile, provisional data shows average UK rents rose by 8.7% in the year to January 2025. Last month, the average rent for England was £1,375, compared with £780 in Wales and £995 in Scotland.
According to our correspondent, the increase in food prices from 1.9% to 3.1% will undoubtedly be a problem. Rachel Reeves, the chancellor of Theo Leggett, claims she is trying to "deliver economic growth," but the Conservatives believe she is "out of her depth," and the Liberal Democrats term her ideas "misguided." After reaching 11.1% in 2022—the highest level in 40 years—inflation, or the gradual rise in prices, has drastically decreased. Real-time Reporting Emily Atkinson was the editor. The year ending in December saw a 4.6% increase in home prices. An estate agent's window displays advertisements for homes for sale, which two women peruse. PA is the image source. Now for some more economic news. Over the course of the year, the average price of a home in the UK rose 4.6% to £268,000 based on information from the Office for National Statistics (ONS) until December 2024. In December, the average price of a home in England was £291,000, while in Wales and Scotland it was £208,000 and £189,000, respectively. In the meantime, according to preliminary data, average UK rents increased by 8.7% in January 2025. England's average rent last month was £1,375, while Wales' and Scotland's were £780 and £995, respectively.

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