Labour Research April 2007

News

Inflation jumps up

Dearer mortgage interest payments after the January rise in interest rates pushed inflation higher. In February the Retail Prices Index rose by 4.6% - up from 4.2% the previous month.

Inflation under the Consumer Prices Index (CPI), which excludes housing costs, and is the government's preferred measure, also rose to 2.8% from 2.7% in January. Rising transport costs were the main factor contributing to the change.