Days of low inflation are over with UK consumer finances to take a hit | Larry Elliott
by Larry Elliott Economics editor from on (#2CN4F)
High street competition has helped rein in prices, but households are facing rising cost of living due to falling pound and rising commodities
It was nice while it lasted, but the days of ultra-low inflation are over - at least for the time being.
The year ahead is going to be marked by rising prices and squeezed living standards, but the pickup in the cost of living needs to be put in perspective; January's increase was smaller than expected, and the result of prices falling less sharply than they did a year ago.
Related: UK warned to expect higher inflation as CPI jumps to 1.8% - business live
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