UK February CPI +10.4% vs +9.9% y/y expected

• Prior +10.1%
• CPI +1.1% vs+0.6% m/m expected
• Prior -0.6%
• Core CPI +6.2% vs +5.7% y/y expected
• Prior +5.8%
• Core CPI +1.2% vs +0.8% m/m expected
• Prior -0.9%

This is not going to make the BOE's task any easier going into their policy decision later this week. Markets are anticipating that the central bank will hike by another 25 bps on Thursday and then be done with the tightening cycle. But when you look at the sort of underlying inflation pressures, it is hard for policymakers to say that they have done enough.

Looking at the details, the monthly jump owes much to a jump in prices from restaurants and cafes, food, and clothing. This was then partially offset by downward contributions from recreational and cultural goods and services, and motor fuels. From a core standpoint, it is worrying that food price inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term continues to surge higher (as seen below).

The pound has gotten a jump from 1.2230 to 1.2260 against the dollar but it's hard to see this as being a decisive factor to shift the thinking at the BOE. I guess we shall see later in the week.