Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Inflation climbs to 3% as pricier food, flights and private schooling hit households

by February 19, 2025
February 19, 2025
Inflation climbs to 3% as pricier food, flights and private schooling hit households

UK inflation jumped to 3% in January, up from 2.5% in December, driven by rising food costs, higher air fares and an increase in private school fees.

According to the Office for National Statistics (ONS), this is the fastest pace of price growth in 10 months.

Grocery staples such as meat, eggs, cereals and butter have become noticeably more expensive, with items like olive oil and lamb soaring by 17% and 16% respectively over the past year. Meanwhile, many households are bracing for further increases, as energy, water and council tax bills are all set to rise in April.

Higher wage bills and a forthcoming increase in National Insurance could also prompt some employers to pass on costs to consumers, further stoking inflationary pressures. “Life is a struggle,” one young mother, Gaby Cowley, told the BBC, noting that her weekly shop has nearly doubled over the past three years.

A key factor in January’s inflation jump was the inclusion of VAT on private school fees for the first time, effective from 1 January. The ONS says this “one-off” addition triggered about a 13% increase in fees at the start of the year.

Air fares also contributed to the rise. Although flight prices usually dip in January, the drop was less steep than usual, meaning travel costs remained higher than in previous years.

The higher-than-expected inflation rate has led to fresh speculation about whether the Bank of England will slow its interest rate cuts. With inflation still above the Bank’s 2% target, some economists believe policymakers may reconsider the pace of further reductions, although many expect the gradual downward trend to remain on track.

Professor Jonathan Haskel, a former member of the Bank’s Monetary Policy Committee, says it’s unclear whether the latest spike is a “harbinger of more to come” or simply an outlier that can be discounted when setting monetary policy.

While Treasury Minister James Murray has warned the path back to lower inflation could be “bumpy”, he insists the government’s reforms will “kick-start” growth. The government also points to the state pension triple lock and new minimum wage rates as ways to mitigate the cost-of-living crunch.

However, both the Conservatives and Liberal Democrats have blamed Labour’s tax and spending policies for January’s rise in inflation, with Liberal Democrat Leader Ed Davey warning of a “new era of stagflation” if growth remains weak while prices climb.

Analysts, including Ruth Gregory at Capital Economics, describe the inflation jump as “uncomfortable” for the Bank of England but do not expect it to halt further interest rate cuts altogether. Nevertheless, the persistent threat of rising wages and higher bills for consumers suggests that inflation could remain a pressing issue for the foreseeable future.

Read more:
Inflation climbs to 3% as pricier food, flights and private schooling hit households

0
FacebookTwitterGoogle +Pinterest
previous post
Trump FBI director nominee Kash Patel picks up support from key GOP senator
next post
MPs critical of ageist ‘wealth-hoarding’ labels for baby boomers

You may also like

How and why gender diversity is KEY for...

April 3, 2024

HMRC under fire as thousands of ‘bogus’ Chinese...

December 11, 2024

The search for Britain’s finest businesses across the...

September 26, 2022

From Injury To Justice: The Role Of Personal...

November 29, 2023

Operator Licence Application Process – Road Haulage

February 5, 2025

Luxury and Speed Combined: Sports Car Rental in...

September 15, 2023

How can construction site managers ensure crew safety?

December 4, 2024

UK businesses plan to boost business travel spend...

October 4, 2022

Passport e-gates failure cause chaos at UK airports

May 8, 2024

The cost of trading crisis: How SMEs can...

September 2, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved