Inflation jumped to a 10-month excessive firstly of this yr after the Authorities enforced sharp will increase in non-public faculty charges.
The buyer costs index (CPI) rose from 2.5pc in December to 3pc in January, in response to the Workplace for Nationwide Statistics (ONS), which was its steepest price since March final yr.
The rise, which was bigger than economists had anticipated, comes after the Authorities ended the long-standing VAT exemption for personal faculties on January 1.
From the beginning of this yr, many colleges handed value will increase onto mother and father after the usual price of 20pc was utilized to personal faculty schooling and boarding charges.
The ONS stated non-public faculty charges was the one issue driving up schooling inflation, which surged by 12.7pc in comparison with the earlier month.
It helped push providers inflation as much as 5pc from 4.4pc in December.
Companies inflation is among the many readings carefully watched by the Financial institution of England because it considers rate of interest coverage in a bid to maintain inflation down.
Rachel Reeves stated her “primary mission” was getting “extra kilos in pockets” after inflation elevated to 3pc in January.
The Chancellor stated: “For the reason that election we’ve seen yr on yr wages after inflation rising at their quickest price – value an additional £1,000 a yr on common – however I do know that thousands and thousands of households are nonetheless struggling to make ends meet.
“That’s why we’re going additional and sooner to ship financial progress.”
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