UK Inflation Rate Rises by 10.4%

Last updated Mar 24, 2023

British inflation unexpectedly rose by 10.4% in February, pushed up by higher food prices and pricier drinks in pubs and restaurants, official data showed on Wednesday.

This comes just a day before the Bank of England announces its latest interest rate decision.

Economists had forecast that the annual CPI rate would drop to 9.9 percent in February from January’s 10.1 percent and move further away from October’s 41-year high of 11.1 percent.

The BoE is due to announce on Thursday whether it has raised interest rates for an 11th meeting in a row.

Investors are split on whether it will pause its run of increases in borrowing costs because of the recent upheaval in the global banking sector.

Pound Sterling rose against the dollar and the euro after the data was published.

The ONS said that an end to January drinks promotions in pubs and restaurants was the biggest factor pushing up inflation last month, but shortages of salad items also played a role.

Reuters/Hauwa Abu

Inflation UK