UK inflation unchanged at 4% despite forecasted rise
- Joel Orme
- Feb 14, 2024
- 2 min read
The UK's inflation rate has remained at 4% in January, the same rate as December, despite forecasters predicting a slight rise. The Bank of England's target, set by the government, is 2%, with Chancellor Jeremy Hunt saying "the plan is working".
Forecasters had thought that inflation would rise to 4.2% in January, but latest figures show it's stayed at the December rate of 4%. The falling price of food, which fell in January for the first time since September 2021, along with lower furniture costs kept the rate steady.
However, gas and electricity costs continue to increase, and these were the two upward factors that threatened the inflation rate the most.
Inflation hit a peak of 11.1% in October 2022, and the government pledged to halve that rate in 2023, which it met. It has subsequently set the target of 2% to the Bank of England. Chancellor Jeremy Hunt said: "Inflation never falls in a perfect straight line, but the plan is working - we have made huge progress in bringing inflation down from 11% and the Bank of England forecast that it will fall to around 2% in a matter of months."
Labour's Shadow Chancellor Rachel Reeves has said that inflation is still too high, and that "working people are worse off" after a Conservative government. She says that families are still struggling with the cost of living.
She said: "Inflation is still higher than the Bank of England's target and millions of families are struggling with the cost of living. The Conservatives cannot fix the economy because they are the reason it is broken. It's time for change. Only Labour has a long-term plan to get Britain's future back by delivering more jobs, more investment and cheaper bills.
"The Conservatives cannot fix the economy because they are the reason it is broken. It's time for change. Only Labour has a long-term plan to get Britain's future back by delivering more jobs, more investment and cheaper bills."
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