Britain's inflation rate crept up last month, as expected, but still remained well below the Bank of England's 2 per cent target, official figures showed today.
The Office for National Statistics said consumer prices fell by 0.5 per cent in January, taking the annual rate up a tenth of a point to 1.4 per cent.
The main upward effects came from bank overdraft charges and lower seasonal reductions on clothing and footwear than a year earlier.
Consumer price inflation has now been below the bank's new target since May 1998. But the central bank expects it to rise sharply this year to be on target at the end of its two-year time horizon, justifying its interest rate increase earlier this month.