economic inflation in UK rose unexpectedly for the first time in four months in February, official The data showed Wednesday, an uptick up pressure on the bank of England (BoE) one day before its announcement latest decision on interest rates.
consumer price CPI jumped to 10.4% in 12 months through February from 10.1% in the previous month, as higher energy prices continue to strain household budgets, The Office for The National Statistics Authority announced on Wednesday.
Economists polled by Reuters had expected the annual consumer price index rate He was drop to 9.9% in February of 10.1% and move away from october 41-year high of 11.1%.
While economists expect prices drop quickly later this yearinflation over five times higher of the Bank of England’s target of 2%.
Center bank will weigh need to control inflation against Concerns about repercussions from global Banking problems when you decide to raise interest rates on Thursday. the bank 10 consecutive approved rate Since December 2021, prompting key bank rate to 4%.
Investors are divided on Whether she will pause that it run of He increases in Borrowing costs due of recent disturbances in the global The banking sector.
“according to market movements of To late, this puts the bank of England in A very difficult situation because it may not be enough for the bank of England pressure pause on the rate Hiking,” Richard Carter, head of fixed interest research At Quilter Cheviot, he said.
Sterling rose against the dollar and the euro after publishing the data.
interest rate Futures showed 100% chance That the Bank of England will raise interest rates by a quarter a point, up from just over 50% late on Tuesday.
Dangerous hike
The Office for National Statistics said the end of January drink promotions in Bars and restaurants were the biggest driving factor up economic inflation last month, but the shortage of authority items also played a role.
“The prices of food and non-alcoholic beverages have gone up considerably highest rate in over 45 years with Special increases for Some salad and vegetables items Energy costs are high bad weather across parts of Europe has led to shortages and rationing, said Grant Fitzner, chief economist at the bureau.
total inflation for The percentage of food and non-alcoholic beverages increased to 18%. highest Data shown since 1977.
Core CPI – which excludes energy, food, alcohol and tobacco and is closely watched by the Bank of England – rose to 6.2% from 5.8%. in January, against expectations decline to 5.7%.
annual inflation rate in The service sector, which most policy makers consider a good Measures of lurking price stress in The economy rose to 6.6% after stopping at 6%. in January.
the increase in economic inflation in Britain contradicted with drop in US consumer price index rate to 6.0% in 12 months through February. Eurozone inflation also tempered last month, but the main one price growth Keep accelerating.
Chancellor of the Exchequer Jeremy Hunt said the data showed what to expect decline in Inflation cannot be taken for Granted.
“Low inflation is not inevitable, so we are need To stick to our plan to cut it in half yearHunt said in a permit.
On Tuesday, he told lawmakers that inflation above 10% is “dangerously high.”
There were some signs of decrease price upcoming pressures.
Prices paid by factories increased by 12.7% over 12 months to February, still A.J big rise By historical standards, but its weakest increase since September 2021.
Prices charged by manufacturers have risen at their weakest level pace in a yearand up by 12.1%.
