UK inflation warnings intensify as service sector costs rise

Key sector's first slowdown for four months in Markit/Cips PMI report could point to wider trend

Warnings that Britain is heading for a sharp increase in inflation have intensified after a key business survey showed companies in the services sector are grappling with their biggest rise in costs for almost six years.

The report into the UK economy's biggest sector, which spans banks to hotels and hairdressers, showed firms suffered their first slowdown for four months in January. This suggests the economy lost momentum at the start of 2017.

Related: Bank of England sharply raises UK growth forecast

The 3 UK #PMI surveys show companies' costs are rising at the joint-fastest rate since the global financial crisis pic.twitter.com/wOVzjoqiIv