UK inflation soars to two-year high

Inflation in the UK rose to its highest level for more than two years today, heaping further pressure on the Bank of England to raise interest rates.

The Consumer Price Index (CPI) rate of inflation rose to 4.4% in February from 4% in January, driven by increases in the price of fuel, food and clothing, said the Office for National Statistics.

Economists had expected a rise of 4.3%.

Today’s CPI figure, the highest rate since October 2008, is now more than double the Bank’s 2% target, and is likely to throw weight behind the argument for hiking interest rates from a historic low of 0.5%.

The Retail Prices Index (RPI) measure of inflation, which includes mortgage payments, rose to 5.5% from 5.1% in January, its highest level for 20 years, and also ahead of expectations of 5.3%.