This was up from 0.5 per cent in December.
Food inflation also up in January, rising to 7.5 per cent compared to 6.2 per cent in December.
Since summer the report has shown a trend for decelerating inflation however unprecedented promotional activity by retailers in December has temporarily reversed this trend.
Non-food prices showed deflation in January, down 2.1 per cent compared with the same time last year.
BRC director general Stephen Robertson said: “Retailers' margins are taking a hammering as they hold down prices to encourage hard-up customers. Most non-food goods continue to be significantly cheaper than a year ago. And prices in sectors including clothing and furniture are actually falling more quickly.”
He added: “But the effects of the weak pound are starting to filter through to the costs of imports, slowing the rate of price falls for some non-food goods and contributing to pushing up the prices of some food products. In particular the fall in sterling has increased overseas demand for UK beef and pushed up the price of some imported commodities.”
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