UK inflation rose to 0.7% in January, which is more than economists predicted.

The Office for National Statists said that restaurants, hotels furniture and household goods, food, and transport all increased the cost of living in January.

Prices in clothing and footwear declined at the start of the year as retailers cut prices.

“There were smaller upward contributions across the household textiles; household appliances, fitting and repairs; and glassware, tableware and household utensils groups, with the only standout movements coming from fitted sheets and duvets,” said the ONS report, commenting on the rise in furniture prices over lockdown.

Peter Campbell, the finance director of Long Eaton Sofas, commented on the boom in furniture sales: “It’s unprecedented. My cash book has never been so healthy. It’s not just good, it’s crazy good … sales have been flying ever since we came back from lockdown.”

DFS is hiring an extra 300 manufacturing and distribution staff to cope with demand during this period.

Commenting on UK year on year inflation rising to 0.7% Ian Warwick, Managing Partner at Deepbridge Capital, said: “Today’s data confirms the challenging environment for investors as a long period of low interest rates combined with lockdowns has resulted in a scenario where many consumers have accumulated a comparatively high level of savings in a low-return environment.

“Many are therefore sitting on cash piles that are not appreciating in value while agile companies, which continue to survive, and in some cases, thrive, by providing a product or service which has a genuine medium to long term solution to a recognised problem, require capital to continue to develop and grow.”