Consumer price index rise blamed on technology

Prices in the UK are being driven up by recent hikes in the cost of computer hardware and software, according to figures released by the Office of National Statistics (ONS).

Consumer Price Index (CPI) annual inflation, the government's target measure, rose to two per cent in February, and the ONS reported that a key driver for this was price increases in computer games and printer supplies.

The ONS reported that last year's discounting of printer paper has led to a rise in price this year, which also boosted the CPI.

"Retail price inflation was unchanged in February, remaining at 2.4 per cent, and was influenced by many similar factors to those that affected the CPI," said the government report.

"In addition, a small upward pressure came from housing costs that are excluded from the CPI."

But technology is not the sole culprit. Prices of books and magazines also rose, as did the cost of furniture, household equipment and routine maintenance.

As an internationally comparable measure of inflation, the CPI shows that the UK's inflation rate is slightly below the average for the European Union as a whole.

The provisional inflation rate for the enlarged EU 25 in February was 2.2 per cent, compared with the UK figure for the same month of two per cent.