U.K. inflation unexpectedly picked up for the first time in four months in February, putting further pressure on the Bank of England to raise interest rates at its meeting this coming Thursday.
The Office of National Statistics said on Wednesday that rising energy prices continued to pressure household budgets, leading to a rise in the consumer price index (CPI) to 10.4% in the 12 months through February from 10.1% in January.
Reuters polled economists predicted the annual rate of inflation would fall to 9.9% in February, down from October’s 41-year high of 11.1% but still eating into the purchasing power of workers whose wages are increasing at a slower rate.
The Bank of England will meet on Thursday (23 March) to consider whether to increase interest rates.
The U.K. central bank has approved 10 consecutive rate hikes since December 2021, bringing the benchmark rate up to 4%.
