UK inflation holds steady at 4% in January as lower food prices help offset higher energy costs

Inflation in the U.K. held steady at 4% in January as lower food prices helped offset an increase in energy costs. The reading from the Office for National Statistics on Wednesday was better than expected as most economists had predicted a modest rise. Still, inflation remains double the Bank of England’s target rate of 2%. The central bank has managed to get inflation down from a four-decade high of more than 11% by raising its main interest rate aggressively from near zero to 5.25%. It has held the rate there since August and there are hopes that cuts may soon be on the agenda.