UK Inflation Exceeds 2% Target
LONDON (dpa-AFX) - UK inflation exceeded the Bank of England's 2 percent target in February for the first time since 2013, data from the Office for National Statistics showed Tuesday.
Inflation accelerated more-than-expected to 2.3 percent in February from 1.8 percent in January. This was the biggest rise in prices since September 2013. Inflation was forecast to climb 2.1 percent.
The consumer prices index including owner occupiers' housing costs, moved up 2.3 percent annually, the highest since September 2013, following a 1.9 percent rise in January.
Likewise, core inflation that excludes energy, food, alcoholic beverages and tobacco, rose to 2 percent from 1.6 percent in January.
After declining for 31 consecutive months, food prices gained 0.3 percent year-on-year in February.
Month-on-month, consumer prices grew 0.7 percent in February, faster than the expected 0.5 percent increase economists had forecast.
Another report from the ONS showed that factory gate prices rose at the highest pace since December 2011.
Output prices climbed 3.7 percent year-on-year, in line with expectations and the eighth consecutive increase. Prices had climbed 3.6 percent in January.
Input price inflation came in at a double-digit 19.1 percent, but smaller than January's 20.1 percent. Economists had forecast the rate to stagnate at 20.1 percent.
On a monthly basis, input prices slid 0.4 percent, in contrast to a 1.6 percent rise in January and confounded economists' expectations for a 0.1 percent increase.
Copyright RTT News/dpa-AFX
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