 Shops were quick to reverse sale discounts |
UK inflation jumped by more than expected last month to reach 3%, its highest level since May 1998. The underlying rate - which excludes mortgage interest payments - rose from January's figure of 2.7%, pushed higher by the rising cost of clothes and shoes.
The figures, from the Office for National Statistics, showed the headline rate of inflation rose to 3.2%, up from 2.9% in January.
Despite the increase in prices, analysts said the Bank of England was unlikely to respond by raising interest rates.
Rate worries?
Underlying inflation has now been above the government's 2.5% target for four months in a row.
The figure can be one percentage point over or under this figure, but if it breaches the target range then the governor of the Bank of England has to write a letter of explanation to the Chancellor.
 Higher lettuce prices pushed up inflation |
Higher inflation would normally bring fears of a rate rise, but economists said the Bank's interest rate committee was unlikely to act. "(The figures are) not sufficient to concern the Monetary Policy Committee," said David Page at Investec.
"Petrol and housing (are) still contributing a lot and they are viewed as temporary."
Most analysts expect inflation to peak in June, reflecting the fact that it bottomed out in June last year at 1.5%.
"I think in overall terms, the thing to focus on is the fact that this inflation rate is actually still consistent with the Bank of England's inflation forecast that they made in February," said Alan Castle, an economist at Lehman Brothers.
"Therefore, today's numbers are not going to be a surprise to the Bank."
Price jump
Analysts had expected petrol prices to be a big factor behind February's increase.
But the biggest influence proved to be higher clothing prices, as shops marked up their goods after the January sales.
Price increases in fresh vegetables - including cucumbers and lettuces - also contributed to the higher-than-expected figure.
February's figures were based on a revised basket of goods being used to calculate inflation.
The new selection of goods and services includes takeaway latte coffees, golf green fees, and powdered diet drinks, while brown ale, tinned spaghetti and vinyl flooring have all been dropped.