The Client Costs Index (CPI) jumped by 6.2% within the 12 months to February 2022, markedly up from 5.5% in January.
On a month-to-month foundation, CPI rose by 0.8% in February, in contrast with an increase of 0.1% in February 2021.
ONS mentioned it was the biggest month-to-month CPI enhance between January and February since 2009.
The sister Client Costs Index together with proprietor occupiers’ housing prices (CPIH) rose by 5.5% within the 12 months to February 2022, up from 4.9% within the 12 months to January.
The most important upward contributions to the February CPIH 12-month inflation charge got here from housing and family companies (1.39 share factors, primarily from electrical energy, fuel and different fuels, and proprietor occupiers’ housing prices) and transport (1.26 share factors, principally from motor fuels and second-hand vehicles).
On a month-to-month foundation, CPIH rose by 0.7% in February 2022, in contrast with an increase of 0.1% in February 2021.
The upward contributions to the change within the CPIH 12-month inflation charge between January and February 2022 have been various, with the biggest coming from quite a lot of leisure and cultural items and companies (principally video games, toys and hobbies), and clothes and footwear, ONS mentioned.
There have been no massive offsetting downward contributions to vary.
Inflation has continued to rise inexorably over the past six months with some forecasters predicting a charge as excessive as 9% this yr.
Sarah Giarrusso, funding strategist at wealth supervisor Tilney Smith & Williamson, mentioned the February CPI charge was nicely above the 6% consensus.
She mentioned: “The annual headline inflation continues to achieve new 30 yr highs, pushed by various objects. Meals and non-alcoholic drinks rose by 5.1% over the yr and the surge in clothes and footwear continued this month, growing 8.9% from a yr in the past. Providers additionally noticed one other leg up with recreation and tradition growing 4.7% yr over yr and eating places and inns growing 5%.
“A unbroken pattern this month was the elevated annual determine for transportation which elevated 11.5%, owing to the availability chain constraints disrupting new and used car costs. Worth rises in electrical energy, fuel and different fuels are nonetheless on an upward trajectory rising 23.1% from a yr in the past.
“Elevated vitality costs are on the forefront of everybody’s minds. The surge in costs has proven little signal of abating and the warfare in Ukraine is prone to imply vitality costs will stay excessive and unstable.
“Though warfare in Ukraine has elevated dangers to each inflation and development, we must always not lose sight of fundamentals which stay robust. Earnings development in fairness markets has resumed an upward trajectory and low ranges of unemployment prevail in developed economies around the globe.”
• It is a growing story. Examine again later for extra remark and evaluation.