The Consumer Price Rate of inflation remained unchanged throughout January at 3 per cent, the latest data from the Office for National Statistics has revealed.

The Consumer Price Index, including owner occupiers’ housing costs, the ONS’ newest measurement of inflation, was also unchanged in January 2018, at 2.7 per cent.

The ONS said the largest downward contribution to change in the rate came from prices for motor fuels, which rose by less than they did a year ago. The main upward effect came from prices for a range of recreational and cultural goods and services, in particular, admissions to attractions such as zoos and gardens, for which prices fell by less than they did a year ago.

Commenting, Aegon head of pensions Kate Smith said: “Price inflation has been above the government’s 2 per cent target for 11 months in a row, and this could continue to be the case for months to come, as the economy grapples with Brexit and other global events. Inflation will continue to hit people on fixed incomes the hardest, such as pensioners, for some time to come.

“As people are living longer, with much of this spent in retirement, it’s vital they protect their savings from the erosive effects of inflation. Even at low levels of inflation £100 in today’s money could be halved in spending power in 20 years’ time. Those with built in pension increases, such as DB pensions and the state pension will be protected to some extent. Those with DC pensions will need to think very carefully how to protect the spending power of their retirement savings, and should seek advice.”

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