U.K. consumer prices rose to the highest level in six months in January, easing pressure on the Bank of England to cut interest rates, data from the Office for National Statistics showed Wednesday.
The CPI inflation measure saw a rise to 1.8 percent rise in the year ended January, the fastest pace in six months, compared to both prior and forecasts of 1.3 percent and 1.6 percent respectively.
“The rise in inflation is largely the result of higher prices at the pump and airfares falling by less than a year ago,” the ONS said.
The data indicated that inflation took steps towards the Bank of England’s 2 percent target, so it may ease the pressure on the BOE to slash interest rates soon.
The annual core CPI reading also accelerated from 1.4 percent in December to 1.6 percent last month.
As of 10:25 GMT, the pound traded lower higher versus the U.S. dollar at
1.2983, resuming its drop for a third straight session.