.jpg)
1 hour ago
2
Article content
(Bloomberg) — UK inflation held at an 11-month low before the war in Iran sent petrol costs soaring and threatened to deliver another shock to household finances.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Consumers price growth stayed at 3% in February, the Office for National Statistics said on Wednesday. It was in line with economists’ expectations for an unchanged reading.
Article content
Article content
Services inflation — which is watched for signs of domestic price pressures — cooled slightly to 4.3%, the lowest since March 2022.
Article content
“The largest upwards driver was the price of clothing,” said ONS Chief Economist Grant Fitzner. “This was offset by falls in petrol costs, with prices collected before the start of the conflict in the Middle East and subsequent rise in crude oil prices.”
Article content
Article content
The pound held losses against the dollar, to trade 0.2% lower at $1.3385.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
February’s figures have been overshadowed by conflict in the Middle East upending the outlook for inflation and prompting traders to bet on the Bank of England turning to interest-rate hikes to stop a feedback loop in prices.
Article content
The UK central bank expects a surge in petrol prices to immediately push up inflation to 3.5% in March before gas and electricity bills climb when the UK’s energy price cap is updated in the summer. There are also signs the shock is rapidly feeding through to businesses with manufacturers suffering the sharpest pick-up in cost pressures in over three decades in March.
Article content
The latest geopolitical crisis will evoke painful memories on Threadneedle Street after it struggled to contain the energy price shock caused by Russia’s invasion of Ukraine in 2022. Last week the Monetary Policy Committee said it “stands ready to act” with even one of its most dovish rate-setters warning that hikes are on the cards in a prolonged energy price surge.
Article content
—With assistance from Joel Rinneby, Mark Evans and Sylvia Westall.
Article content
English (US)