UK inflation in unexpected rise

Inflation unexpectedly increased to 10.4% in the year to February 2023 from 10.1% in January.

Contributing to the rise in inflation was a UK wide fruit and vegetable shortage, pushing up food prices at the fastest rate in 45 years.

Other costs, including alcohol and clothing also rose significantly last month whilst fuel prices continued to fall.

In response to the increase, the Bank of England increased interest rates to a 14 year high of 4.25% in an attempt to curb the rising costs.

The Bank also stated that, despite the recent increases, it expects inflation to fall by the end of the year as energy prices continue to come down.