Inflation in the UK accelerated again in February, surprising analysts who had expected a slight decline and a result below 10%.
Prices rose 10.4% in February, according to the Office for National Statistics. in year. This means an increase in inflation, which in January amounted to 10.1 percent. Prices also beat analysts’ expectations of a decline to 9.9 percent.
inflation in the UK
The result, released on Wednesday by the statistical office, broke a three-month streak of declining inflation. So far, the peak was recorded in October, when it reached 11.1 percent.
Moreover, inflation also recorded a significant jump on a monthly basis. In February, it amounted to 1.1 percent, and in January prices fell by 0.6 percent. According to the UK office,
– Prices for food and non-alcoholic beverages have risen to their highest levels in more than 45 years. Due to high energy costs and bad weather, the office’s chief economist Grant Fitzner said.
What will the Bank of England do?
In the face of rising inflation, the Bank of England may decide to raise interest rates again. The base rate is currently 4%. However, the increase may meet with significant social discontent, and the situation is already tense, because a wave of strikes associated with the economic crisis sweeps across the UK.
– Significant rise in inflation strengthens arguments in favor of tomorrow’s interest rate hike. However, the events of the past ten days have led to a significant drop in market expectations for interest rates; there is about a “50/50” chance of a 25 basis point increase, Martin Beck, economic adviser at the EY ITEM Club, told AFP.
Source: Wprost
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