UK inflation jumps to 10.4%, surprising analysts

By AP News

Britain’s inflation rate has risen for the first time in four months in February

Britain Food Inflation

LONDON (AP) — Britain’s inflation rate rose for the first time in four months in February, surprising analysts and increasing pressure on the Bank of England to raise interest rates at its meeting on Thursday.

The consumer price index jumped to 10.4% in the 12 months through February from 10.1% the previous month, as high energy prices continued to squeeze household budgets, the Office for National Statistics said Wednesday.

While economists expect prices to drop rapidly later this year, inflation is more than five times higher than the Bank of England’s 2% target.

The central bank will weigh the need to control inflation against concerns about the fallout from global banking troubles when it decides whether to raise interest rates on Thursday. The bank has approved 10 consecutive rate increases since December 2021, pushing its key bank rate to 4%.

Michael Hewson, chief analyst at CMC Markets UK, said he expects the Bank of England to raise rates by at least a quarter of a percentage point.

“A base rate of 4% barely seems adequate to act as a drag on this measure of price rises and will still increase the pressure on the Bank of England” to raise rates on Thursday, Hewson said in a note to clients before the inflation figures were released.

IMPORTANT NOTICE AND DISCLAIMER

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for Investing Intel Newsletter