There was an unexpected jump in the UK’s rate of inflation last month, driven by higher prices for food after shortages of salad and other vegetables.
The consumer prices index (CPI) measure of inflation increased to 10.4% in the 12 months to February 2023, from 10.1% in January, the Office for National Statistics (ONS) said.
Prices for food and non-alcoholic drinks rose by 18.2% in the year to February 2023, up from 16.8% in January. Food prices haven’t risen this fast since August 1977.
Higher alcohol prices in restaurants and pubs and an increase in clothing prices also contributed to last month’s inflation, while fuel prices continued to fall.
“Food and non-alcoholic drink prices rose to their highest rate in over 45 years with particular increases for some salad and vegetable items as high energy costs and bad weather across parts of Europe led to shortages and rationing,” said ONS chief economist Grant Fitzner.
“These were partially offset by falls in the cost of motor fuel, where the annual inflation rate has eased for seven consecutive months.”
Last week, the Office for Budget Responsibility forecast that inflation would fall to 2.9% by the end of 2023.
The latest inflation data comes ahead of Thursday’s interest rate decision by the Bank of England, with financial markets now expecting another increase.
