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UK February inflation rate above forecasts at 1.9%

Staff Writer |
The annual inflation rate in the United Kingdom rose to 1.9 percent in February 2019 from 1.8 percent in the previous month and above market expectations of 1.8 percent.

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Prices went up further mainly due to food, alcohol and tobacco, and recreational and cultural goods.

Year-on-year, prices increased at a faster pace for food and non-alcoholic beverages (1.1 percent compared to 0.9 percent in January); housing, water, electricity, gas and other fuels (1.2 percent compared to 1.1 percent); recreation and culture (3.1 percent compared to 2.9 percent); and alcoholic beverages and tobacco (5.1 percent compared to 4.2 percent).

Meanwhile, cost slowed for transport (3.1 percent compared to 3.2 percent); and furniture, household equipment and maintenance (0.3 percent compared to 1.0 percent).

Additionally, prices dropped further for clothing and footwear (-2.0 percent compared to -1.3 percent) and inflation was steady for restaurants and hotels (2.6 percent, the same as in January) and miscellaneous goods and services (0.2 percent).

The consumer prices index including owner occupiers’ housing costs (CPIH) was at 1.8 percent in February, unchanged from the prior month.

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, advanced by 1.8 percent, easing from a 1.9 percent gain in January and slightly below market consensus of 1.9 percent.

On a monthly basis, consumer prices went up 0.5 percent, rebounding from a 0.8 percent fall in the previous month and in line with forecasts.

It was the highest monthly inflation rate since August last year, as prices rebounded for transport (0.4 percent compared to -1.2 percent in January); clothing and footwear (1.0 percent compared to -4.3 percent); and furniture and household equipment (2.0 percent compared to -2.1 percent).

Also, cost of food and non-alcoholic beverages increased further (0.4 percent compared to 0.1 percent).

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