The Consumer Price Index (CPI), which measures inflation in the UK, rose to 3% year-on-year in January from 2.5% in December, beating expectations of 2.8%, according to data released by the Office for National Statistics (ONS) on Wednesday morning.

On a monthly basis, the CPI fell by 0.1% in January, compared to a decline of around 0.6% in January 2024.

The core index, which excludes food and energy prices, rose to 3.7% in January from 3.2%, matching analysts’ expectations.

In the details of the index, the largest contribution to inflation in January came from the transport, food and non-alcoholic beverages sectors, while the largest downward contribution came from housing and household services.