UK inflation up to 4.4

This morning’s UK inflation figures have come out higher than expected, with the headline CPI rate now at 4.4%, up from 4% in January.

Retail prices, which include mortgage payments, are up 5.5% – the highest rate for 20 years.

Although this is not great news for consumers, it does mean that the Bank of England might be more likely to raise interest rates in the next few months, so the Pound tends to gain value in anticipation of interest rate rises. We have seen some small gains this morning against most major currencies, although with the Budget and Bank of England Minutes due out tomorrow, any gains may well be short lived.