UK Feb CPI jumps beyond expectations, highest since September 2013

The UK consumer prices extend its bullish momentum in February, arriving at 2.3% versus January’s +1.9%, much stronger than a 2.1% rise expected, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge also jumped in Feb, coming in at +2.0 y/y. Markets had predicted the core figures to show an increase of +1.8%.

On monthly basis, the UK inflation figures returned to positive territory, coming in at 0.8% last month, as compared to -1.0% previous and expectations of +0.5%.  

ONS reports, “Rising transport costs, particularly for fuel, were the main contributors to the increase in the rate. Prices for food increased by 0.3% between February 2016 and February 2017, following 31 consecutive months of prices falling on the year.”