You are here: Home - Uncategorized -

UK inflation rate edges up to ‘unacceptable’ 2.8%

Written by:

The UK inflation rate increased to 2.8% in February, provoking fears of further interest rate rises as the Bank of England struggles to keep a lid on increasing prices and a booming housing market.

On the measure of the Consumer Prices Index (CPI), inflation in February was 2.8%, up from 2.7% the month before. The figure was boosted by increases in air passenger duty and air fares and is well above the Government’s target figure of 2% for the CPI.

“My assessment is that the Monetary Policy Committee (MPC) at the Bank of England, which sets the interest rate, will be raising rates again pretty soon, probably by another 0.25%,” said City analyst Colin Perry.

“It’s also worth noting that there was a bigger rise in the Retail Prices Index to 4.6% from 4.2% in January. The main driver here is house prices, which are excluded from the CPI, and there is currently no sign of the property market cooling.”

He added: “If the CPI goes above 3%, the Bank of England’s governor, Mervyn King, has to write a letter to the Government explaining why it has happened. Mr King does not want to write that letter – believe me – and the current rate itself is unacceptable.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Ministers under fire for endorsing ‘wrong’ HIP operations

Legal experts and property professionals have attacked the Government for failing to take their concerns about the introduction of Home...