Investing.com – Consumer price inflation in the U.K. rose more-than-expected in February, jumping to the highest level since October 2008, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said that the rate of consumer price inflation rose to a seasonally adjusted 4.4% in February, up from 4% in January.
Analysts had expected U.K. consume prices to rise by 4.2% in February.
The rate of inflation was more than double the Bank of England’s 2.0% target. The BoE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
According to the report, the main factors affecting CPI were an increase in domestic heating costs, particularly gas, and the continued increase in the price of crude oil.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose more-than-expected in February, increasing to a seasonally adjusted 3.4%, after rising by 3.0% in January.
Analysts had expected U.K. core CPI to increase by 3.2% in February.
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD rising 0.38% to hit a 14-month high of 1.6371.
Meanwhile, European stock markets were up. The FTSE 100 climbed 0.39%, the EURO STOXX 50 gained 0.69%, France’s CAC 40 added 0.5%, while Germany's DAX was up 0.1%.
In a report, the U.K. Office for National Statistics said that the rate of consumer price inflation rose to a seasonally adjusted 4.4% in February, up from 4% in January.
Analysts had expected U.K. consume prices to rise by 4.2% in February.
The rate of inflation was more than double the Bank of England’s 2.0% target. The BoE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
According to the report, the main factors affecting CPI were an increase in domestic heating costs, particularly gas, and the continued increase in the price of crude oil.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose more-than-expected in February, increasing to a seasonally adjusted 3.4%, after rising by 3.0% in January.
Analysts had expected U.K. core CPI to increase by 3.2% in February.
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD rising 0.38% to hit a 14-month high of 1.6371.
Meanwhile, European stock markets were up. The FTSE 100 climbed 0.39%, the EURO STOXX 50 gained 0.69%, France’s CAC 40 added 0.5%, while Germany's DAX was up 0.1%.