UK inflation jumped to a 30-year high of 5.5% in January, putting pressure on the Bank of England

• UK inflation jumped to 5.5% in January, a new 30-year high and above economists’ expectations.
• Price rises were driven by clothing and footwear, the Office for National Statistics said.
• The data adds to the pressure on the Bank of England to continue to increase interest rates.

UK inflation rose to a 30-year high in January and by more than expected, data showed Wednesday, adding to the pressure on the Bank of England to act fast to tame red-hot price rises.

Annual price growth hit 5.5% last month, the Office for National Statistics said, the strongest inflation since 1992. Economists polled by Bloomberg had been expecting inflation to stay at 5.4% for the second consecutive month.

Clothing and footwear added to the upward pressure as shops put on fewer post-Christmas sales, the ONS said. It was the third straight consumer price index inflation reading above 5%.

Economists expect price rises to accelerate over the coming months, due in large part to the lifting of a countrywide cap on the price of energy. Britons are facing a major squeeze on the cost of living, which will also be intensified by tax rises in April.

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The Bank of England expects inflation to surge to 7.25% in April, far above its target rate of 2%.

Britain’s central bank hiked interest rates for the second time in a row to 0.5% at its last meeting. Analysts said Wednesday’s figures will embolden so-called “hawks” on the Bank’s monetary policy committee to push for harder and faster rate rises.

“The increase in CPI inflation from 5.4% to a new 30-year high of 5.5% in January continued the run of upward surprises,” said Paul Dales, chief UK economist at consultancy Capital Economics.

Dales said the reading “will add a bit more pressure on the Bank of England to continue to raise interest rates rapidly. We think rates will rise from 0.5% now to 1.25% this year and to 2% next year.”

The pound was up 0.14% to $1.356 after the data was released. London’s FTSE 100 stock index was 0.14% higher.