The Bank of England (BOE) may have to forget its intention to start slowing its monetary policy tightening after published UK inflation data soared to its latest 30 -year high in February.
Data released by the National Statistics Office (ONS) showed the inflation rate rose higher last month with an increase of 6.2% from 5.5% recorded the previous month.
The reading also exceeded market expectations to gain 6.0%, with the central bank predicting a double -digit increase in inflation this year.
UK inflation, which has soared from just 0.4% a year ago, has far left the central bank’s target for a 2% increase. The index rose 0.8% in February alone, the biggest increase since 2009.
The BOE had previously stated the possibility that they might ‘take a long break’ from raising rates in 2023 by signaling a hike would take place at a policy meeting in May.
However, with the latest readings of data showing rising inflation still continuing, central banks may face difficulties in making further decisions.
Finance Minister Rishi Sunak will present the annual budget today, which will surely be the focus of the market to find out about the government’s plans in tackling the rising cost of living.
