Consumer Price Inflation rises for first time in five months to 3.4%

21 January 2026

Commenting, Kris Brewster, Director of Retail Banking at LHV Bank, said:

“This rise in CPI inflation to 3.4% will worry many people and raises fresh questions about the Bank of England’s grip on the economy. After repeated signals that price growth was coming under control, this move shows how uncertain the position still is, especially as services costs remain high.”

“After missing its target for well over a year, it is hard to argue that the Bank has inflation firmly under control. Each setback adds more pressure on households who are already struggling with high bills and wages that are not keeping pace.”

“In this environment, people cannot rely on the wider economy to protect their spending power. Making active choices matters. Using savings and current accounts that still reward loyalty, and shopping around for better rates, helps money work harder and can soften the impact of rising costs.”