UK inflation rises unexpectedly in February
20.03.07
The Office of National Statistics revealed this morning that consumer prices rose by 0.4% in February, taking the annual rate to 2.8%y/y. The market had expected inflation would remain steady at 2.7%y/y, still some way above the Bank of England’s 2.0% target. The Retail Price Index (RPI) hit its highest level since August 1991 coming out at 4.6% and this is likely to fuel talks of further tightening from the MPC in the months ahead.
The news helped Sterling advance against both the Dollar and the Euro to 1.9550 and 1.4820 respectively.