U.K. inflation risks will be highlighted by January inflation data

The U.K. January consumer price index (CPI), is expected to rise to 4% today, double the 2% target rate and the highest since the early 1990's, whilst retail price index (RPI) inflation which includes mortgage costs will rise from 4.8% to possibly as high as 5.5%. How many U.K. workers are getting pay increases this year in line with inflation? The answer is not many! Things are going to get a lot tougher for home owners when interest rates start increasing this year meaning even less disposable income.