UK inflation jumps to 3%, reducing chance of early interest rate cut

Annual CPI inflation rate hit 10-month high in January in blow to ministers amid rise in food bills and fuel costs

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UK inflation accelerated faster than expected at the start of this year, eating into workers' wages and reducing the chance of an interest rate cut next month.

The consumer prices index (CPI) measure rose to 3% in January, the Office for National Statistics reported, up from 2.5% in December.