Watch as Bank of England governor Andrew Bailey appears before the House of Lords economic affairs committee on Wednesday 14 February.

       Inflation unexpectedly held steady last month as food prices fell for the first time in almost two-and-a-half years, official figures show.

       Consumer Prices Index (CPI) inflation remained unchanged at 4 per cent in January, lower than the 4.2 per cent that economists had forecast although still double the Bank of England’s 2 per cent target, the Office for National Statistics (ONS) said.

       The monthly drop in food prices, of 0.4 per cent, was the first since September 2021, with the cost of bread and cereals, cream crackers and chocolate biscuits falling, the ONS said.

       While food and non-alcoholic beverage prices are still 7 per cent higher than a year ago, the category saw the slowest rate of increase since April 2022.

       On a monthly basis, food and non-alcoholic beverage prices fell by 0.4 per cent between December and January.