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Inflation in biggest monthly rise since 2012

Mar 21, 2017 - Investment Adviser

Inflation has broken through the Bank of England's (BoE) 2 per cent target following the largest month-on-month rise since October 2012.

The Consumer Prices Index (CPI) rose to 2.3 per cent in February from 1.8 per cent a month earlier. The last time inflation jumped as much was between September and October 2012.

The figure was also above the consensus expectation of 2.1 per cent - with the largest surprise being a rise in core inflation, which rose from 1.6 per cent to 2 per cent.

This month's publication also saw the ONS change its official measure of inflation away from CPI to include housing costs, with CPIH now the key statistic. In February, CPIH was also 2.3 per cent, up from 1.9 per cent in January. This was the largest month-on-month rise since September...