Headline: UK inflation likely hits 10-month high in January, fueling BOE rate cut concerns

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According to economists surveyed by Bloomberg, data released on Wednesday is anticipated to reveal a 2.8% year-over-year rise in consumer prices in January. This increase is primarily driven by higher private school fees and a reversal of volatile factors that suppressed inflation in December.

These figures may amplify the Bank of England (BOE) policymakers' concerns about a worsening inflation outlook at a time when the economy is also stagnating. They project that increased energy bills will push consumer price growth to a peak of 3.7% later this year.

While two BOE officials endorsed a substantial half-point rate cut when the central bank relaxed monetary policy earlier this month, the majority of the committee still favors a cautious approach to reducing borrowing costs.

Particular concern lies in the uptick in underlying inflation measures closely monitored by the BOE for signs of domestic pressures. Services inflation is expected to recover significantly from 4.4% to 5.2%, driven by erratic elements such as airfares and a rise in private school fees after the Labour government subjected them to Value Added Tax (VAT).

Additional Key Points:

* Labor market data released on Tuesday is expected to show a rise in wage growth excluding bonuses to 5.9% in the fourth quarter.
* Australia's first rate cut in the current cycle, as well as another reduction in New Zealand, are among the highlights this week.
* The US economic calendar features several reports on the housing market, highlighting a slowdown in housing starts in January.
* Canada's January inflation data is projected to show a rise in the headline rate to 1.9%, with core measures also accelerating.
* The Reserve Bank of Australia is poised to join the global monetary easing campaign with a rate cut to 4.1% on Tuesday.
* New Zealand is anticipated to follow suit a day later with a 50 basis-point reduction.
* South Africa's inflation is forecast to increase to 3.2% in January, fueled by higher food and gasoline prices.