Inflation in the U.K. rose to a 10-month high in January, an increase that will likely diminish expectations of rapid interest rate reductions from the Bank of England.

UK Inflation rose unexpectedly to 3% in January, complicating the Bank of England's strategy to cut interest rates gradually amid a weak outlook for economic growth. Consumer prices rose 3% compared to the previous year,

UK headline inflation is back at 3%, up from 2.5%, after briefly dipping below the Bank of England’s 2% target last Autumn. That’s a tad higher than expected, though almost entirely because of a near-1% month-on-month increase in food prices,