Member Article

Inflation rises to 4.4%

The UK Consumer Prices Index (CPI) annual rate of inflation has risen to 4.4%, up from 4% in January.

This was driven by higher food, fuel and clothing costs and was the highest level for more than two years.

Retail Prices Index (RPI) inflation - which includes mortgage interest payments - rose to 5.5% from 5.1% in January, the highest rate for 20 years.

The CPI measure has now been one percentage point or more above the 2% target for 15 months.

The overall increase in CPI to 4.4% was more than had been forecast by economists.

The CPI figure is the highest since October 2008, and will put pressure on the Bank of England to lift interest rates to curb accelerating inflation.

According to the Office for National Statistics the largest inflationary pressures came from clothing and footwear costs which rose by 3.6% following the January sales.

Overall transport costs rose by 0.8% between January and February - pushed up by a 1.4% increase in pump prices, following rises in the price of crude oil.

This was posted in Bdaily's Members' News section by Ruth Mitchell .