Inflation expected to rise for second month in blow to Rishi Sunak – live

Wage growth

LIVE – Updated at 19:12

Economists are bracing for rises in the cost of living to have accelerated for a second month, as the Office for National Statistics publishes new data on inflation.

While inflation has fallen from a 41-year high of 11.1 per cent in October 2022 to below prime minister Rishi Sunak’s stated goal of 5 per cent by the end of 2023, it remains above the Bank of England’s longstanding target of 2 per cent.

While chancellor Jeremy Hunt celebrated a surprise fall to 3.9 per cent in November, the rate of inflation rose again in December to 4 per cent – and is now expected to have done so again last month.

The fresh figures, due on Wednesday morning, are expected to show that Consumer Prices Index inflation – a measure of the costs that households face – hit 4.2 per cent in January.

Economists will be watching keenly for signs on what impact the figures could have on the Bank of England’s base interest rate, which is causing pain for borrowers and homeowners struggling with higher mortgage rates.

Key Points

• Inflation expected to have risen for second month in a row
• New ONS data could deal political blow to Sunak and Hunt

Rising inflation could deal political blow to Sunak and Hunt

19:01 , Andy Gregory

The Chancellor is expected to be dealt a blow as new data on Wednesday could show that inflation rose for the second month in a row.

If inflation rises to 4.2 per cent as is expected, it could also hurt the government’s promises to help households out by getting inflation under control.

However, this is only likely to be a short-term blip before inflation begins to fall again.

Inflation expected to have risen for second month in a row

18:57 , Andy Gregory

New data from the Office for National Statistics on Wednesday could show that inflation rose for the second month in a row.

Economists expect the figures will show that Consumer Prices Index inflation – a measure of the costs that households face – rose from 4.0 per cent in December to 4.2 per cent in January.

It would be a blow for households because their costs are rising faster than at the end of last year, although inflation is still less than half where it was a year ago.

18:56 , Andy Gregory

Good evening, we’ll be using this blog to provide you with live updates as the Office for National Statistics publishes fresh monthly data on the rate of inflation.