Inflation Hits 2.3%

Inflation jumped to it highest level for three and a half years in February. Average prices rose by 2.3pc in February, from 1.8pc in January. This was higher than the 2.1pc predicted by economists, and was driven by price rises for food and fuel and the weakened pound.

Right on cue the siren sound of people calling for an increase in rates. Not so fast though, any rise in rates will adversely hit economic activity and increase unemployment.

There will be no rush to raise rates anytime soon!