Edition: United Kingdom  
One News Page
“Probably the fastest-access news portal in the world”
> >

Inflation smashes Bank of England's two per cent target

City A.M. Tuesday, 21 March 2017
Inflation smashes Bank of England's two per cent targetInflation has smashed through the Bank of England’s two per cent target for the first time since November 2013 as the Office for National Statistics (ONS) changes its headline inflation measure.

Consumer price inflation (CPI), which has been the main measure of price rises since 2003, rose at an annual rate of 2.3 per cent in February, up from 1.8 per cent in January, according to the ONS.

The new measure, the catchily named consumer prices index including owner occupiers’ housing costs (CPIH), rose from two per cent in January to 2.3 per cent as well last month.

The ONS is now in the strange position of reporting two different measures of how much prices are rising in the UK.

The odd state of affairs has arisen because of flaws in the methodology for CPIH, which have meant the UK Statistics Authority has refused to grant "national statistic" status to the measure.

However, the Bank of England will continue to use CPI as its target for monetary policy, as mandated by the Treasury. This is thought to be unlikely to change before CPIH gains the stamp of approval from the Statistics Authority, with the Treasury currently having no plans to make a change.

However, the confusion is unlikely to have major policy implications given the level of the measures, with both easily above two per cent.

Rising transport costs caused by increases in the price of fuel were one of the main drivers of the headline increase in prices, the ONS said.

Meanwhile, food prices had a small upward effect on inflation for the first time since 2014.

Jonathan Athow, ONS deputy national statistician, said: “Inflation has risen to its highest rate for almost three and a half years with price increases seen across a range of items but with food and fuel having the largest impact."
0
shares
Share on
Facebook
Share on
Twitter
Post on 
Reddit
Share by
Email
 
Source: Reuters Studio - < > Embed

News video: UK inflation shoots past Bank of England target

UK inflation shoots past Bank of England target 01:29

British inflation last month shot past the Bank of England's 2 percent target for the first time since the end of 2013 and looks set to climb further due to the Brexit hit to the pound and rising global oil prices. David Pollard reports.

You Might Like


Recent related news

Political turmoil drives 10 per cent surge in London currency trades

Political turmoil drives 10 per cent surge in London currency trades
Foreign exchange turnover in the UK rose by 10 per cent in the year to April as traders focused on political turmoil around the world, according to new data from...
City A.M. - BusinessAlso reported by •Tiverton Mid Devon Gazette

Deutsche Bank boss admits improvements needed after second quarter results

Deutsche Bank boss admits improvements needed after second quarter results
Deutsche Bank’s share price plunged four per cent this morning after the German firm reported a 10 per cent fall in revenues in its second quarter. Chief...
City A.M. - Business

Tynsel Parkes' out-of-hours care decision delayed after dad...

Tynsel Parkes' out-of-hours care decision delayed after dad...
A school has "postponed" its decision on controversial out-of-hours care hikes which would cost parents more than £1,000 a year.Parents had been told the cost...
Burton Mail - UK


Other recent news in Business

Amundi reveals net outflows in the SECOND QUARTERPORSCHE to ditch Le Mans a year early and follow Mercedes into Formula E
Yet another HEALTHCARE failure for Trump as paranoia stalks the White HouseHorse RACING betting tips: Back Enable to be crowned queen at Ascot
NORTH KOREA hackers 'want cash not secrets'REPUBLICANS drop plans for import tax
Toshiba reaches $2.2 billion deal over SCANA's SOUTH CAROLINA nuclear projectIn Puerto Rico BANKRUPTCY, mutual funds compete with themselves
Starbucks signals U.S. caution on lower profit; closing TEAVANA storesVerizon in talks to buy WideOpenWest's CHICAGO network: sources

Twitter

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2017 One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter   FIND us on Google+