UK hit by second minor set-back this year as inflation stuck at 4%

A restaurant worker cleaning and a chef preparing food.

Responding to the CPI inflation figures for January 2024, released by the Office for National Statistics, Ben Harrison, Director of the Work Foundation at Lancaster University said:

“The UK has hit a second minor set-back this year as inflation is stuck at 4%, which is unchanged from the previous month, due to higher gas and electricity charges. This will present a quandary to Bank of England rate-setters about whether to stick or reduce interest rates as inflation remains double their target.

“And it presents big challenges for workers. Real term pay may have risen this month by 1.4%, but ONS data shows that four in ten adults who pay energy bills are finding it very or somewhat difficult to afford them, and the OBR predicts living standards will be 3.5% lower in 2024-25 than before the pandemic.

“Those in low paid and insecure jobs will be worst impacted by this and among those most vulnerable should inflation remain stuck or if interest rates rise further. This underlines the importance of more action to improve access to better paid, more secure jobs.”

Statistics quoted on insecurity are from - (17 and 28 January 2024)

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