The UK Consumer Prices Index (CPI) annual inflation rate rose to 4 pc in January, up from 3.7 pc in December, as the effects of the VAT rise were felt, BBC News informs, quoting the Office for National Statistics data. Higher oil prices also meant inflation remained well above the 2 pc target. Retail Prices Index (RPI) inflation – which includes mortgage interest payments – rose to 5.1 pc from 4.8 pc. The CPI figure is the highest since November 2008, and will put pressure on the Bank of England to lift interest rates to curb accelerating inflation. On the other hand, inflation in China has accelerated in January despite three interest rate rises in the past four months. Consumer prices rose by 4.9 pc in January from a year earlier, the National Bureau of Statistics said.