CPI and CPIH Increase Amid Global Uncertainty

  • Inflation hits a 30-year high at 6.2% in February
  • CPI rose by 6.2% in the 12 months to February 2022, up from 5.5% in January
  • The highest rate since January 1997 and March 1992
  • CPIH increased by 5.5% in the 12 months to February 2022
  • Largest upward contributions from housing, household services, and transport
  • Monthly CPI rose by 0.8%, largest increase since 2009
  • Diverse upward contributions from recreational goods and clothing
  • No large offsetting downward contributions
  • KPMG chief economist predicts further rises due to Ukraine conflict

The Consumer Prices Index (CPI) has risen by 6.2% in the 12 months to February 2022, according to the Office for National Statistics (ONS), marking the highest rate since January 1997 and the highest in the historic modelled series since March 1992 at 7.1%. The CPI including owner occupiers’ housing costs (CPIH) increased by 5.5% in the same period, up from 4.9% in the 12 months to January. Housing, household services, and transport were the largest contributors to the February 2022 CPIH 12-month inflation rate. The monthly consumer price index (CPI) rose by 0.8%, the most significant increase between January and February since 2009. Recreational goods, cultural services, and clothing saw the largest upward contributions, while no large offsetting downward contributions were found. KPMG’s chief economist Yael Selfin predicts further rises this year due to global energy, food, and commodity market impacts from Russia’s invasion of Ukraine, potentially reaching 8.8% in summer.

Factuality Level: 9
Factuality Justification: The article provides accurate information from the Office for National Statistics (ONS) and KPMG, cites specific inflation rates and contributing factors, and includes expert commentary on potential future impacts of global events.
Noise Level: 3
Noise Justification: The article provides relevant information about inflation rates and their causes, but it lacks in-depth analysis or exploration of potential solutions to the issue.
Financial Relevance: Yes
Financial Markets Impacted: Financial markets may be impacted due to rising inflation rates and potential further increases caused by the Russia-Ukraine conflict.
Financial Rating Justification: The article discusses inflation rates, which directly affects consumer prices and can influence financial markets as it impacts purchasing power and investment decisions.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses a significant increase in inflation rates due to global factors such as Russia’s invasion of Ukraine.

Reported publicly: www.retailsector.co.uk