Newspaper article The Journal (Newcastle, England)

Energy Costs Give Inflation a Twist

Newspaper article The Journal (Newcastle, England)

Energy Costs Give Inflation a Twist

Article excerpt

ENERGY bill rises sent UK inflation soaring to a nine-month high in Februar y.

Recent double-digit price increases saw the Consumer Prices Index - the official measure of inflation - rise to 2.5% in February from 2.2% in January, says the Office for National Statistics.

Households have been hit by increases in gas and electricity tariffs from all but one of the six main suppliers this year as providers have sought to pass on rises in wholesale energy costs.

The ONS confirmed that this spike in inflation was largely down to a change in the way it calculates inflation to reflect the trend for price increases to come into effect sooner.

Instead of phasing in increases over four months, the ONS last month moved to include gas and electricity rises from the day they were introduced, which saw all this year's increases kick in for February data.

The ONS said CPI inflation would have remained unchanged at 2.2% last month if it had not made the change. …

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