'More questions than answers' as inflation remains unchanged at 4%

Lower than expected

UK headline inflation has remained unchanged at 4% in January, coming in under consensus expectations of a rise to 4.2%, although experts are split over the implications of the data.

Mazars chief economist George Lagarias highlighted the monthly figure, which showed inflation fell 0.6% from December, the largest drop in a year. "Quite frankly, I see no reason to be pessimistic about UK inflation," he said. "If the pace is maintained, in the next four months, we will see much better headline numbers, as we put the high inflation figures from February to May 2023 behind us." UK wage growth defies forecasts but slows to lowest level in more than a year Daniel Casali, chief investment strategist at Evelyn Partners, added the figure was "benign" and suggested the "b...