UK inflation rate hits new 30-year high at 5.5%

LONDON — U.K. inflation came in at an annual 5.5% in January, slightly ahead of forecasts and remaining at a 30-year high.

On a monthly basis, consumer prices contracted by 0.1%, slightly less than expected by economists in a Reuters poll. The annual print was expected to remain at 5.4%.

December’s 5.4% annual rise in consumer prices was the highest since 1992, and the Bank of England has imposed consecutive interest rate hikes for the first time since 2004 in a bid to contain runaway inflation.

The Bank expects inflation to peak at 7.25% in April, having previously projected a 6% ceiling in its December report.

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