The UK experienced a surge in inflation during February, following a three-month period of decreasing rates.
The Office of National Statistics (ONS) revealed that the annual inflation rate reached 10.4% last month, which exceeded expectations of a decrease below 10%.
The rate had previously dropped from its peak of 11.1% in October to 10.1% in January over the previous three months. The ONS attributed the unexpected spike in inflation with the increase in the cost of food and drinks.
Official figures show that food prices reached their highest level in over 45 years last month, due to a surge driven by vegetable shortages. Prices for food and non-alcoholic drinks rose by 18% year-on-year, exceeding the 16.7% rate in January and marking the highest level since August 1977.
Recent weeks saw shortages of some salad and vegetable items, such as tomatoes, cucumbers, and peppers, which contributed significantly to the sharp increase in food inflation. These shortages were caused by extreme weather affecting harvests in Spain and North Africa, as well as supply chain issues and high energy prices that impacted UK growers.
According to the ONS, inflation was also affected by the price of alcohol in pubs and restaurants, which increased after discounts in January. The inflation rate for restaurants and cafes as a whole was 11.4% last month, surpassing the 9.4% rate in January and marking the highest level since December 1991.
Talking about the surprise jump, ONS chief economist Grant Fitzner said: “Inflation ticked up in February, mainly driven by rising alcohol prices in pubs and restaurants following discounting in January.
“Food and non-alcoholic drink prices rose to their highest rate in over 45 years with particular increases for some salad and vegetable items as high energy costs and bad weather across parts of Europe led to shortages and rationing.
“These were partially offset by falls in the cost of motor fuel, where the annual inflation rate has eased for seven consecutive months.”
