Food inflation remains at 4%

Inflation remains at 4% despite economists predicting a rise of 4.1% or even 4.2%, according to official figures.

The Office for National Statistics (ONS) said that in January the consumer price index (CPI) measure of inflation stood at 4%.

The price of second hand cars and the energy price cap rising both impacted to the inflationary pressure.

Everyday food and drink items has slowed which helped offset the acceleration in inflation for energy costs, but for a small number of groceries inflation is still accelerating for items such as pasta and fruit and vegetables.

From December to January the cost of food fell 0.4% and the overall rate of inflation for food is 8%, in March last year food inflation was 19.2%, the highest in 45 years.

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 2% in a matter of months.”