British core inflation ticks higher in February

Britain's underlying inflation rate ticked slightly higher in February because of higher motoring costs but remained well below…

Britain's underlying inflation rate ticked slightly higher in February because of higher motoring costs but remained well below the Bank of England's 2.5 per cent target, official data showed today.

The core rate of inflation - which excludes volatile home loan payments - rose to an annual rate of 1.9 per cent last month from a record low of 1.8 per cent the month before. Economists had expected it to remain at 1.8 per cent.

It said the foot-and-mouth outbreak had not affected the February data because it had not started when the data was collected.

Britain's national statistics office also said the country's goods trade deficit with the rest of the world narrowed to £2.4 billion sterling in January from £2.9 billion the month before.