United Kingdom: Inflation edges up in February
March 19, 2013
In February, consumer prices added 0.7% over the previous month, which contrasted the 0.5% drop seen in January. The figure marked the highest monthly increase since April 2011 and was in line with market expectations. Higher prices for clothing and footwear as well as for transport were the main drivers behind the monthly reading.
Annual headline inflation rose from 2.7% in January to 2.8% in February, which represents the highest rate in 10 months. Nevertheless, annual average inflation edged down from 2.8% in January to 2.7% in February.
In its latest inflation report from February, the Bank of England expects inflation to average 3.0% in 2013, before moderating to 2.7% in 2014. FocusEconomics Consensus Forecast panellists expect inflation to average 2.6% in 2013, which is up 0.1 percentage points from last month's forecast. For next year, the panel forecasts inflation to average 2.3%.