Inflation in the United Kingdom (U.K.) unexpectedly rose to 10.4% in February as food and energy costs continued to march higher.
The British Consumer Price Index (CPI) increased by an annualized 10.4% in February, above the 9.9% consensus forecast of economists, and up from 10.1% in January.
On a monthly basis, the U.K. inflation rate rose 1.1%, well above forecasts of a 0.6% increase.
The biggest contributors to inflation during February were restaurants and cafes, grocery prices, and energy costs.
The surprise February increase comes after three consecutive months of slowing consumer price increases. Inflation in the U.K. peaked at 11.1% in October of last year.
British households continue to contend with high food and energy bills, while workers across the U.K. have launched massive strikes amid disputes over pay raises and cost of living increases.
The latest inflation data ratchets up pressure on the Bank of England, which has been raising interest rates aggressively in an effort to lower consumer prices.
The central bank is scheduled to announce its latest interest rate decision on March 23.
The independent Office for Budget Responsibility recently projected that U.K. inflation would fall to 2.9% by the end of 2023, a forecast that many economists say is overly ambitious.
