The falling pound has caused the consumer price index to rise from 3.0% in January to 3.2% in February.
Both food and energy prices are significantly higher than last year. Meat and vegetables are 15.2% and 18.6% higher respectively. Gas and electricity are 33.1% and 18.0% higher.
Economists expect that the consumer price index will turn negative, briefly, this autumn.
For now, at least, the risk of deflation has diminished.
Source: Financial Times