Inflation rises sharply

The Office of National Statistics (ONS) has announced that inflation rose significantly last month. The Consumer Prices Index (CPI) rose to 4.4% in February, up by 0.4% since January. The Retail Prices Index (RPI) which includes the cost of mortgages, rose from 5.1% in January to 5.5% in February; its highest level for 20 years. The Bank of England’s Monetary Policy Committee (MPC) has a target for CPI of 2% - this is the 15 month in a row that this target has not been met, and the current level of CPI is the highest it has been since October 2008.