Rishi Sunak has been given a Valentine’s Day gift as inflation unexpectedly held steady last month.
The consumer prices index (CPI) - which measures the costs that households face - was unchanged at 4% in January, according to the Office for National Statistics (ONS).
Economists had expected prices to rise by 4.1% compared to the same month last year.
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 2pc in a matter of months.”
The drop eases pressure on the Bank of England to keep interest rates higher for longer to bring inflation back down to its 2% target.
Responding to the latest inflation figures from the ONS, Alex Veitch, Director of Policy at the British Chambers of Commerce said: “Businesses need price stability, so today’s news that inflation remained unchanged in January is welcome.
“However, firms consistently tell us inflation is their top concern. In our latest research 58% of firms citied it as a worry, though this has fallen in recent quarters from the highs we saw in 2022.
“The Bank of England has already warned that inflation is likely to remain volatile over the coming months because of global uncertainty. The Red Sea crisis is causing supply chain disruption and price rises for businesses.
“Next month’s budget is an opportunity for the Government to reassure and support businesses. Companies across the UK will be looking for a clear plan from the Chancellor that prioritises investment and skills.”
FTSE100
The UK's flagship share index, the FTSE 100, was up 43-points at 7,555 shortly after opening this morning.
Brent crude oil futures was up 0.17% today, trading at $82.91 a barrel.
Companies reporting today
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| Barrick Gold | Q4 Results |
| Coca-Cola HBC | Full Year Results |
| Dunelm | Q2 Results |
| Heineken | Full Year Results |
| Severn Trent | Q3 Trading Statement |
| United Utilities | Q3 Trading Statement |