Tuesday, 21 March 2017

UK inflation rate leaps to 2.3%



Rising fuel and food prices helped to push last month's inflation rate to the highest since September 2013.

 
Inflation as measured by the Office for National Statistics' Consumer Prices Index (CPI) jumped to 2.3% in February - up from 1.8% in January.


The increase has pushed the rate above the Bank of England's 2% target.


Food prices recorded their first annual increase for more than two-and-a-half years, standing 0.3% higher in February than a year earlier.


The Bank of England has said it expects inflation will peak at 2.8% next year, although some economists think the rate could rise above 3%.

The Brexit vote last June prompted a steep fall in the value of the pound, making imported goods more expensive.


Ben Brettell, senior economist at Hargreaves Lansdown, said the fall in the pound against the dollar had been pushing transport costs higher since last summer.


"Oil is priced in dollars, and sterling has fallen around 13% on a trade-weighted basis since last June's referendum. As such transport costs accounted for 0.8 percentage points of the overall figure," he said.




BBC   News.