Just days ago, inflation appeared to be coming down nicely and some were talking down the chances of another interest rate hike. However, February's inflation data shows that the scale of the inflation challenge cannot be underestimated
The increase was driven by food and drink prices. At 18%, they rose at their fastest pace in 45 years in the year to February.
Rising alcohol prices in pubs and restaurants - following discounting in January - also drove up inflation.Looking beyond food and energy, which can be volatile, core inflation came in at 6.2%. This was up from 5.8% and suggests economic activity is proving resilient in the face of higher interest rates.
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