Inflation rises above Bank of England's target rate

Inflation as measured by the Consumer Price Index (CPI) rose to 2.3% in February – up from 1.8% in January, according to the latest figures from the Office for National Statistics (ONS).

22 Mar 2017

Inflation as measured by the Consumer Price Index (CPI) rose to 2.3% in February – up from 1.8% in January, according to the latest figures from the Office for National Statistics (ONS).

This is the highest rate since September 2013 and is above the Bank of England's target of 2%. The Bank previously said that it expects CPI inflation to peak at 2.8% next year.

The ONS has attributed the increase partly to rising fuel and food prices – the latter recording their first annual increase for more than two-and-a-half years.

The fall in the value of the pound since the Brexit vote, which makes imports more expensive, has been cited as a reason for the rise in food prices. However, the pound rose sharply after the news of the inflation rate, with Sterling rising by a cent against the dollar.

Anna Leach, Head of Economic Intelligence at the Confederation of British Industry (CBI), said: ‘While inflation has risen above the Bank of England’s 2% target, it is still relatively low by historical comparison. Nonetheless, inflation is likely to rise further still, on the back of stronger fuel prices and as the impact of the weaker exchange rate feeds through. Also, other price data indicates rising costs for businesses, with input prices up 19% on the year.’

The Retail Prices Index (RPI) measure of inflation rose to 3.2% in February from 2.6% the previous month.

Quick Links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2018 Blue Spire Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Contact Chichester Office

Tel: +44 (0)1243 781234
Fax: +44 (0)1243 791770
Email: chichester@bluespiregroup.com


Contact Brighton Office

Tel: +44 (0)1273 739533
Fax: +44 (0)1273 732844
Email: brighton@bluespiregroup.com

Chichester Address
Cawley Priory, South Pallant, Chichester, West Sussex PO19 1SY

Brighton Address
5th Floor Intergen House, 65-67 Western Road, Hove, East Sussex BN3 2JQ

Blue Spire Limited is Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales C004152645. Professional indemnity insurance is provided by Royal & Sun Alliance Insurance Plc 9th Floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD and its territorial coverage is worldwide (excluding United States/Canada).
Blue Spire Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. FSA register https://www.fca.org.uk/register reference 566257. This guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at customers based in the UK