Consumer prices hit their highest level in two and a half years in January, with rising fuel costs pushing inflation higher.
Consumer prices increased by 1.8 per cent compared with a year earlier, picking up from 1.6 per cent in December, and prices paid by factories jumped by more than 20 per cent.
Consumer prices rose 1.8% on a year ago, according to the Office for National Statistics, the steepest annual rate of increase since June 2014.
It was well above the 6.3% increase expected, and followed a 5.5% lift in the year to December.
United Kingdom inflation climbed to 1.8% in January, driven by a jump in fuel prices, while the weak pound and rising oil price sent costs for firms soaring.
The new figures may help persuade U.S. central bankers to tighten monetary policy more quickly this year after a decade of near-zero interest rates.
WPI inflation in vegetables, at (-) 32.32 per cent in January, saw deflationary pressure for the fifth consecutive month.
USA producer prices rose more than expected in January, recording their largest gain in four years amid increases in the cost of energy products and some services, but a strong dollar continued to keep underlying inflation tame. It traded 0.2 percent weaker at 9.4635 per euro by 0911 GMT.
Analysts had expected a 3.8% increase in WPI in January.
The December price report showed a modest increase in the overall rate of inflation, however the core remained unchanged from its rate over the past year.
Margins for retailers also climbed sharply in January, though it is a volatile category that swings sharply from month to month and often skews the wholesale report.
Interestingly, in a break from recent years, the prices for goods rose more than the prices for services (3.1 percent vs. 0.8 percent).
January was also considerably stronger than the same month previous year, with sales up 5.6 percent by that measure. BoE Governor Mark Carney this month warned of "twists and turns" ahead as Prime Minister Theresa May starts two years of formal Brexit talks.
Given no reported movement in the rate of price growth, the underlying forces determining economy-wide inflation don't appear to have changed recently.
Most economists now expect the RBI to hold rates until at least the second half of next year. This pushed up import costs, which in turn boosted consumer prices and caused inflation to increase. The food at home index was unchanged, while the index for food away from home rose 0.4 percent.