Investing.com - Consumer price inflation (CPI) in the U.K. increased more than expected in February, hitting its highest level since September 2013, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation rose from the year before by a seasonally adjusted 2.3% last month, above forecasts for a gain of 2.1% and compared to the 1.8% increase seen in January.
Month-over-month, consumer price inflation rose by 0.7% in February, compared to the prior month’s 0.5% decline and forecasts for a 0.5% gain.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 2.0% last month, higher than forecasts for a gain of 1.8% and compared to the 1.6% advance in January.
The retail price index (RPI) increased 3.2% in February, after rising by 2.6% the previous month. Analysts had expected a gain of 2.9%.
Month-on-month, RPI increased by 1.1% in February, compared to a 0.6% decline in the prior month. Analysts had expected a 0.8% rise.
Core RPI increased at an annualized rate of 3.5% in February, after rising by 2.9% the previous month.
Month-on-month, core RPI increased 1.1% last month, compared to January’s 0.6% drop.
The data also showed that the house price index rose 6.2% in February, below forecasts for a gain of 6.4% and following a 5.7% increase a month earlier. January’s data was revised from an initial 7.2% rise.
Following the report, which was released simultaneously with public finance data for the same month, GBP/USD traded at 1.2447 from around 1.2411 ahead of the release of the data, EUR/GBP was at 0.8669 from 0.8695 earlier and GBP/JPY changed hands at 140.24, compared to 139.83 previously.
Meanwhile, European stock markets traded mixed. London’s FTSE 100 lost 0.20%, the benchmark Euro Stoxx 50 gained 0.20%, France's CAC 40 rose 0.26%, while Germany's DAX slipped 0.04%.