Inflation hikes unexpectedly to 10.4%

The rate of inflation jumped to 10.4% in February from 10.1% the previous month as food and drink prices rose to their highest rate in over 45 years

The main driver behind the unexpected increase came from restaurants and cafes, where prices rose by 11.4% in the year to February 2023, up from 9.4% in the year to January 2023.

This was a result of larger price rises between January and February 2023 than between the same two months in 2022.

Food and non-alcoholic beverage prices rose by 18.2% in the year to February, up from 16.8% the previous month – the highest observed for over 45 years.

The increase in the annual inflation rate was reflected by the upward pressure from price increases for alcohol served in restaurants, cafes and pubs. The rise followed some price falls in January for items such as gin, whisky and some beers.

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