Investing.com - Consumer price inflation in the U.K. rose in line with expectations in February, acclerating at the fastest pace in nine months, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price accelerated at a seasonally adjusted 2.8% in February, in line with expectations and up from 2.7% in December.
Month-over-month, consumer price inflation rose 0.7% last month, in line with expectations, after falling 0.5% in January.
The rate of inflation remains above the Bank of England's 2.0% target, but the Bank of England will not be obliged to write to the Chancellor of the Exchequer, as the inflation rate is less than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs held steady at a seasonally adjusted 2.3% in February. Analysts' had expected core prices to ease to 2.2%.
The retail price index rose 3.2% last month, compared to expectations for a 3.3% increase, after rising 3.3% January.
Following the release of that data, the pound trimmed losses against the U.S. dollar, with GBP/USD shedding 0.08% to trade at 1.5097.
Meanwhile, European stock markets held on to losses. London's FTSE 100 dipped 0.3%, the EURO STOXX 50 declined 0.7%, France's CAC 40 fell 0.7%, while Germany's DAX slumped 0.6%.
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