Are we drinking and smoking ourselves towards higher inflation?

The Consumer Prices Index figure has taken an unexpected turn in the wrong direction, writes James Moore. This should put to bed speculation about a spring interest-rate cut

UK inflation increased unexpectedly due to hikes in the prices of tobacco and alcohol (PA)

You can easily smoke and drink yourself into an early grave. In December, we smoked and drank ourselves into an inflationary one.

The icky-smelling fug in that month’s data – those of a certain age will remember what it was like going into a pub before the indoor smoking ban – was delivered by ciggies and drink.

The alcohol and tobacco category was cited by the Office for National Statistics (ONS) as the biggest contributor to January’s unwelcome increase in inflation to 4 per cent from the 3.9 recorded the previous month. Six of its divisions showed increases in total, compared with just three in decline.