The CPI has lifted 0.2 per cent, leading Bank of England Governor Mervyn King to write a letter to Chancellor Alistair Darling to explain why it’s above the 2 per cent target.
The RPI was expected to fall into negative territory but it’s dropped from 0.1 per cent to 0 per cent.
Tony Dolphin, senior economist at the Institute for Public Policy Research, comments: “With the retail prices measure of inflation falling to zero in February, the UK narrowly avoided its first experience of deflation (falling prices in year-on-year terms) since March 1960.
"Inflation was widely expected to fall below zero in February but was prevented from doing so by bigger than expected increases across a range of goods, including furniture, clothing, recreational goods and footwear. This probably reflects higher import prices – the result, in part, of sterling’s decline over the last 12 months. The same factors were also behind the rise in inflation on the consumer prices measure.”
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