Edition: Global  
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

Highest number of people drunk and disorderly in Staffordshire...

Highest number of people drunk and disorderly in Staffordshire...
The number of people caught drunk and disorderly in Staffordshire is continuing to rise as the county has the highest conviction rate in England and Wales, new...
Burton Mail - UK

Inflation falls sharply to 2.6 per cent

Inflation falls sharply to 2.6 per cent
Inflation slowed dramatically in June as prices of motor fuel and other recreational goods and services slumped, easing pressure on the Bank of England to raise...
City A.M. - Business

HSBC on track to report big jump in second quarter profit

HSBC on Monday is expected to report pre-tax profit growth of as much as 40 per cent in the second quarter and 3 per cent in the first half, as a result of an...
S.China Morning Post - BusinessAlso reported by •DNA

Yes Bank shares jump over 6%, m-cap surges Rs 4,502 cr

Shares of Yes Bank surged over 6 per cent today after the company's net profit zoomed 32 per cent for the first quarter ended June.
DNA - Money

Canadian bonds point to inflation hurdle for further rate hikes

​Canada's bond market is signalling the Bank of Canada will not reach its 2 per cent inflation target anytime soon.
Brisbane Times - Front PageAlso reported by •ANI News

Bank of Canada position seen challenged as price growth slows

Inflation slowed to its lowest level in 18 months, a full percentage point below the Bank of Canada's 2 per cent target.
Sydney Morning Herald - Front Page

London shares drop ahead of the June inflation number

London shares drop ahead of the June inflation number
All eyes are on June inflation data. According to analysts, the headline inflation may have steadied at 2.9 per cent last month, just shy of the critical 3 per...
thisismoney.co.uk - Markets

UK inflation surprises with slowdown, easing pressure on Bank of England

LONDON (Reuters) - British inflation unexpectedly slowed last month for the first time since October, dousing expectations among investors that the Bank of...
Reuters India - Business


Other recent news in Business

UK Government to ban the sale of all new petrol and DIESEL cars from 2040The SENATE just came out with a new version of its repeal and replace plan — here's what you need to know
The SUPREME COURT has ruled employment tribunal fees are unlawfulMIKE ASHLEY wins court case disputing alleged £15m promise made in a pub
Diesel and PETROL CAR BAN by 2040 would cost consumers and economy trillions, campaign group warnsRobot wars: MARK ZUCKERBERG and Elon Musk are embroiled in a geeky AI spat
UK GDP growth at 0.3 per cent: What the experts thinkHere comes AMD EARNINGS... (AMD)
Everything's coming up Netflix: MATT GROENING is working on a new seriesMicrosoft is keeping its PAINT PROGRAM after an outpouring of fan support

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+