Inflation increase is “no cause for alarm”, says IPPR

IPPR has reacted to this morning’s ONS data release of CPI data for January 2025: 

Dr George Dibb, associate director for economic policy at IPPR, said: 

"Today’s rise in inflation was expected and should be no cause for alarm—price pressures remain close to the Bank of England’s forecast and are expected to rise in 2025 before falling back to target. Temporary fluctuations are normal, and the Bank of England has been clear that the bigger picture is one of stability with inflation falling again at the end of year. Weak economic growth remains a bigger issue for the UK economy. 

"But for many households, the cost of living remains a real strain. People need to feel the benefits of a stronger economy, not just hear about them. The government’s plan of supporting investment, wages, workers' rights, and long-term stability is the right one. Today's data is no reason to change course – government should continue working to increase living standards in every region of the country."