Inflation edges up to 1.9%: ONS

CPIH inflation, which the ONS now uses as its headline measure and includes owner occupiers’ housing costs, remained unchanged in February at 1.8%.

The increase was fuelled by rising prices for food, alcohol and tobacco, as well as across a range of recreational and cultural goods.

Alistair Wilson, head of retail platform strategy at Zurich, commented: “Inflation holding relatively steady, the highest levels of employment since 1971, and wages increasing at their fastest pace in over a decade gives a rosy shine to the UK’s economic position.

"However, this may be short-lived. With Brexit causing continued uncertainty, it’s hard to predict which way inflation might swing in the coming months. When it comes to their money, savers need to focus on what they can control. And with tax year end just three weeks away, it can make sense for individuals to maximise their ISA and pension allowances to help grow their wealth over time.”

Philip Smeaton, chief investment officer at Sanlam UK, added: “Clearly, inflationary pressures are still very much evident in the UK as once again we are in line with the Bank of England’s 2% target.

“Real incomes are rising for the time being. But continued low unemployment and rising productivity puts this at risk. We do not believe that this inflation increase will alter the short-term outlook for the Bank of England, but further increases may well force Mark Carney’s hand towards a rate hike to keep it under control.”