The MoneySaving Forum: join to chat & swap tips with other MoneySavers. Learn how in the Forum Introduction Guide

Dearer drinks send inflation up

By the Press Association

The Press Assocation

The Press Association is a news wire with a large reporting team. We use it for additional stories on mainstream issues. Views represented do not necessarily reflect those of MoneySavingExpert.com.


12 February 2013

Inflation rose to 3.3% last month, largely due to rising alcohol prices, the Office of National Statistics (ONS) announced today.

The Retail Prices Index (RPI) measure of inflation, which includes housing costs, rose to 3.3% in January this year, up from 3.1% in December last year.

Related MSE Guides

The Downshift Challenge Tool

Try dropping supermarket brands to save £100s

Supermarket Shopping Tips

30 top tools 'n' tricks to slash food bills

The FlightChecker

Finds all super-cheap budget flights

Meanwhile the Consumer Prices Index (CPI) rate of inflation remained unchanged for the fourth consecutive month at 2.7% – it's the longest period that the CPI growth has remained unchanged since records began in 1996.

Inflation was largely pushed up by hikes in the price of booze, as well as air fares falling by less than they usually do in January.

The ONS says a shortage of vegetables in the UK pushed up food and drink prices, as more produce was sourced overseas. However, fees for financial services, such as money transfers, fell.

Some economists had expected a price hike from energy giant E.on on 18 January to push up inflation, but the ONS says the last of the "big six" firms' energy hikes would feature in February's figures instead.

Higher inflation is putting pressure on consumer spending as wages grow at a slower rate.

Today's figures also come as the Bank of England is due to publish its latest quarterly economic report tomorrow. The Bank held off from more money printing measures last week, keeping its quantitative easing programme at £375 billion, while it also kept interest rates at 0.5%.

Comment/Discuss

Discuss this MSE news story: Inflation rises

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.