Consumer Prices & Producer Prices (Feb.)

UK CPI inflation broke its recent stable run to rise from 2.7% to 2.8% in February. Inflation is likely to pick up further in the near-term. However, the MPC has indicated that it will “look through” this rise and the Chancellor may announce a change to its remit in tomorrow’s Budget that will make it easier for the Committee to take a more flexible approach to its inflation target.

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