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U.K. Future Inflation Gauge Up

A leading indicator of underlying inflation in Britain rose again in January to a level last seen in October, a leading research body said on Friday.

The Economic Cycle Research Institute (ECRI), a New York-based body that specialises in monitoring turning points in the business cycle, said its Future Inflation Gauge rose to 105.7 from an upwardly revised 105.2 in December.

The index's smoothed annualised growth rate edged up to 2.5 percent from 2.1 percent the month before.

"For a year the index has been trending up and so has actual inflation, and the message now is that inflation will continue to trend higher in the near-term," said Anirvan Banerji, ECRI's director of research.

The official rate of underlying inflation, RPIX, which excludes mortgage interest payments, stood at 2.7 percent in January, slightly above the Bank of England's government-set target of 2.5 percent.