Inflation was at its highest in nearly six years last month, upping the chance of another interest rate rise in the coming months.

It remained unchanged at 3%, 1 percentage point higher than the Bank of England’s 2% target, and was mainly driven by ticket prices to attractions decreasing less than they did at this time last year.

Clothing and air fare prices also fell by less than in 2017.

Inflation spells bad news for retailers as household budgets are squeezed as the rise in living costs continues to outstrip wage growth.

The decision in June 2016 to exit the EU is responsible for pushing prices up due to the collapse in the value of the pound resulting in rising import costs.

January’s figure also signals further interest rate rises, with the Bank saying last week that further hikes are expected. Experts predict that May will see the first in a spate of rises.

It upped interest rates for the first time since 2007 in November, marking a shift in policy.

That month saw inflation reach its highest level since 2012, touching 3.1%. It has remained close to that level ever since.

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