BoE's 'inflation headache': Industry reacts as CPI hits 2.3% in February

Sterling soared 0.8%

The Office for National Statistics (ONS) has revealed UK inflation climbed to 2.3% in February, above the Bank of England's 2% target for the first time since late 2013.

After hitting a two-year high of 1.8% in January, the UK Consumer Price Index (CPI) rose to 2.3% in the 12 months to February, the highest level since September 2013 and above analysts' forecasts. Rising transport costs, particularly for fuel, were the main contributors to the increase, while food prices also increased by 0.3% after 31 months of consecutive falls. Consumer pockets to 'feel the pinch' as inflation climbs 1.8% in January The ONS also reported a 19.1% rise in raw material prices, down from 20.1% last month, and a 6.2% rise in UK house prices, an increase from 5.7% the...