U.K. Inflation Rate Rises to Highest in a Year on Motor Fuel

  • Core inflation slows to 1.2% from 1.4% as air fares tumble
  • Inflation well below 2% target supports no BOE action on rates

Unleaded and diesel petrol pumps sit holstered at a Royal Dutch Shell Plc gas station in Brentwood, U.K., on Wednesday, Jan. 20, 2016. Shell, which is buying BG Group Plc in the industry's largest deal in a decade, expects fourth-quarter profit to drop at least 42 percent after the rout in crude prices deepened.

Photographer: Chris Ratcliffe/Bloomberg
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U.K. inflation climbed to its highest in a year in January, driven by motor fuels, food and clothing.

Consumer prices rose an annual 0.3 percent following a 0.2 percent gain in December, in line with the median forecast of economists in a Bloomberg survey. Core inflation, which excludes volatile food and energy prices, slowed to 1.2 percent from 1.4 percent, the figures from the Office for National Statistics in London show.