Inflation hit 4.4% in February, up from 4% in January, according to the Office for National Statistics (ONS) - heaping more pressure on the Bank of England to hike interest rates.
The higher-than-expected increase in inflation comes just a day before George Osborne unveils his March Budget and will increase calls for the Monetary Policy Meeting (MPC) to increase rates at its next meeting. Analysts had been expecting the CPI index to increase to 4.2%. The CPI measure of inflation is now more than double the Bank's target of 2%. Meanwhile, the RPI inflation index jumped to 5.5%, up from 5.1% in January. The ONS said the main factors impacting CPI also impacted the RPI. The increased inflation figures underscore the fragility of the economy as it struggles to e...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
