UK inflation unexpectedly higher

The Office of National statistics (ONS) released figures that show that the Consumers Price Index (CPI) has risen for the month of February, to 3.5% from 3.4%.

The target figure that the Bank of England is aiming at is 2%, though there has been steady downward progress from the inflationary highs of 5.2% seen last September, with 5 months of smooth decline.

Food prices were up 4.6% over the same period in 2011, with clothing and footwear also more expensive.

This is seen as a one off blip rather than a trend reversal and there is no reason to believe that inflation will not continue to head towards 2% but it will be touch and go whether it will be achieved this year.