Advance fuel and food prices helped to push last month’s inflation be worthy of to the highest since September 2013.
Inflation as measured by the Office for National Statistics’ Consumer Evaluates Index (CPI) jumped to 2.3% in February — up from 1.8% in January.
The expand has pushed the rate above the Bank of England’s 2% target.
Scoff prices recorded their first annual increase for more than two-and-a-half years, continuing 0.3% higher in February than a year earlier.
The Bank of England has utter it expects inflation will peak at 2.8% next year, although some economists about the rate could rise above 3%.
Analysis: Jonty Bloom, responsibility correspondent
«DON’T PANIC» are the words that will be written across the Bank of England’s next inflation suss out, in large friendly letters. Well, maybe not, but the Bank’s governor, Designate Carney, said pretty much the same when he was quizzed upward of today’s jump in inflation. Actually, what he said was, «Look — unwed data point, you never overreact to a single data point,» but then he is a principal banker and not the author of the Hitchhiker’s Guide to the Galaxy.
It does, however, amount to much the in any case thing. The Bank of England is not going to be panicked into increasing quicken rates to try to control price rises just because of one month’s symbols. But that doesn’t mean they aren’t important.
They become fuel and food prices are rising, a situation not helped by the fall in the value of the hammer into, which makes imports more expensive. Prices at the factory exit are also rising quickly, suggesting more inflation is on the way to the High Way. And at 2.3%, inflation is increasing at the same rate as average earnings, import the average pay rise is being totally eaten up by increasing prices, not acceptable to make any of us feel better off.
Kamal Ahmed: Is inflation all down to Brexit?
The Brexit opt last June prompted a steep fall in the value of the pound, atoning imported goods more expensive.
Ben Brettell, senior economist at Hargreaves Lansdown, said the dwindle in the pound against the dollar had been pushing transport costs expensive since last summer.
«Oil is priced in dollars, and sterling has fallen approximately 13%… since last June’s referendum.»
He said that Elysian Fields costs accounted for more than a third of the inflation figure.
This month, the ONS has started to promote its preferred inflation statistic, CPIH, which comprises a measure of housing costs and council tax. This was also measured as mature at a rate of 2.3% in February.
The Retail Prices Index (RPI) measure of inflation climb to 3.2% in February from 2.6% the month before.
At the last week’s convention of the Bank of England’s interest rate setting committee, one member voted for animate rates to rise to curb the threat of inflation.
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But without considering inflation standing above the 2% target, some economists do not reckon on interest rates to rise any time soon.
Inflation is now running at the done rate as growth in wages, putting pressure on household income and expending.
Chris Williamson, chief business economist at Markit, said: «It traces likely that policymakers will adopt an increasingly dovish aspect in coming months, despite the rise in inflation, as the economy slows due to consumers being doxy pressed by low pay and rising prices.»
Analysis: Kevin Peachey, personal finance newspaperwoman
The latest inflation figures show that the squeeze on savers by a hairs breadth got a little tighter.
Returns are creeping up — but only one of 793 openly nearby savings accounts matches or beats inflation, according to financial low-down service Moneyfacts.
That one requires savings to be locked in for some rhythm.
The government’s help for savers is a «market-leading» bond, available from NS&I from April. Still that three-year deal is now outstripped by inflation and the picture could deteriorate if the inflation rate keeps rising.
Wages had grown faster than penalties for a while. For those who put some of that money aside, the reward may now not blend the endeavour.
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