UK inflation rate rises to 4% in January
The UK Consumer Prices Index (CPI) annual inflation rate rose to 4% in January, up from 3.7% in December, as the effects of the VAT rise were felt.
Higher oil prices also meant inflation remained well above the 2% target.
Retail Prices Index (RPI) inflation - which includes mortgage interest payments - rose to 5.1% from 4.8%.
The BBC's Stephanie Flanders reports.
15 Feb 2011
- From the section Business