18/03/2008

UK Consumer Inflation Increases

UK consumer inflation has hit 2.5%, the highest in nine months, due to a new method of calculating energy bills.

The Consumer Prices Index hit 2.5% on an annual basis in February, up 2.2% in January, according to the Office of National Statistics.

Core inflation, which excludes oil and food, fell to 1.2% in February, the lowest since August 2006.

The annual rate of 2.5% is above the government’s target of 2% and presents a challenge to the Bank of England to tackle rising inflation as the economy slows.

(DS)

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