March 19, 2008	Wednesday	Rabi-ul-Awwal 10, 1429

LONDON, March 18: British inflation rose to an annual rate of 2.5 per cent in February, the highest level since May 2007, official data showed on Tuesday.

The 12-month inflation rate compared with 2.2 per cent in January and held above the Bank of England’s 2.0 per cent target for a fifth month in a row.“The largest upward pressure came from housing and household services due to gas and electricity bills rising,” the Office for National Statistics (ONS) said in a statement.

On a monthly basis, the consumer prices index rose by 0.7 per cent in February from January, which was the fastest rise since May 2001.

Both readings were broadly in line with market expectations.

The spike in annual inflation was largely due to a change to the way in which the ONS compiles its statistics. The February data reflects recent rises in gas and electricity bills, which were previously spread over a four-month period.—AFP