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Inflation reaches its highest rate in two-and-half years

14th Feb 17 10:39 am

Inflation has reached its highest rate in two-and-half years, this is mainly due to the rising cost of fuel.

Annual inflation measured by the Consumer Prices Index (CPI) reached 1.8 per cent last month, the Office for National Statistics (ONS) said, this is up from 1.6 per cent in December.

This is the fourth consecutive month that the rate has risen, it also takes inflation to its highest since June 2014.

According to the RAC, fuel prices hit a two-year high in early February.

The ONS also said food prices has also helped inflation rise as they stayed unchanged between December and January, due to the fact they had fallen a year ago.

The increase in inflation rate takes the figure closer to the Bank of England’s target rate of two per cent, which was last seen back in December 2013.

Due to the falling pound, inflation is expected to pick up this year as it makes imported goods more expensive.

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