UK consumer price inflation rises to 2.7 percent in January

The figure remained well above the official 2 percent target.

It was a drop, however, from the 3 percent rate reported for December, which was the highest in a decade. The Office for National Statistics said lower costs for transport and food contributed to the decline from December’s rate.

Retail prices rose 4.2 percent in January compared with a year ago. Compared with the previous month, it was a slight decline from 4.4 percent.

Housing costs, which are excluded from the consumer price index, were a major factor in the retail price index, as some lenders raised mortgage rates in response to the Bank of England’s decision in January to raise the base rate to 5.25 percent.