Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
UK inflation surprised to the upside in February, as sharp rises in the cost of alcohol at pubs, restaurants and cafes helped push services inflation to 5.6% year-on-year. Headline inflation rose to 10.4% from 10.1% in January, confounding expectations for a decline to 9.9%, the Office for National Statistics said Wednesday.
The Bank of England is meeting Wednesday, ahead of Thursday's policy announcement, to decide whether to raise interest rates for an 11th consecutive meeting. Markets had been split on whether the Monetary Policy Committee would go for a 25 bps hike of whether to leave rates on hold at 4% in the wake of the banking crisis. The strength of the February data may just give the hawks the ammunition they need to push through a 25bps hike.
Core inflation also rose, up 1.2% m/m and up 6.2% y/y from 5.6% in January. It was the first y/y rise in core inflation in 5 months.
“Inflation ticked up in February mainly driven by rising alcohol prices in pubs and restaurants following discounting in January," Grant Fitzner, ONS chief economist said.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.