By Daniel Hunter
According to official figures released today (Tuesday) by the Office for National statistics (ONS) UK consumer price inflation (CPI) rose to 2.8% in February.
A rise in fuel and energy costs played a large part in the rise, with other upward price pressures coming from recreational goods, such as cameras and computer games.
The headline rate of retail price index (RPI) inflation fell to 3.2% in February, from 3.3% in January,
“While this number has only seen a 0.1% increase from last month’s, this is now the highest for some 9 months," Jeremy Cook, chief economist at the foreign exchange company, World First, said.
“Recently we found out that inflation expectations in the UK had moved up to levels not seen since September 2008, on the basis that investors expect further quantitative easing (QE) from the Bank of England to once again bring the UK economy off its knees - while the devaluation of sterling since the beginning of the year causes our imports to become more expensive.
“Unfortunately this looks like a one-way street at the moment with input prices rising 3.2% in February from January. With the rate price rises only likely to move higher through the rest of the year, the disparity between prices and wages will become more and more obvious.”
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