Mubasher: UK consumer prices eased more than expected in February, driven by a slower growth in transport and food prices.

The Consumer Price Index (CPI) recorded an annual rate of 2.7% last month, down from 3.0% in January, data by the Office for National Statistics (ONS) showed on Tuesday.

Economists had expected a slighter slowdown in prices growth to 2.8% in February.

Meanwhile, the CPI including owner occupiers’ housing costs (CPIH) registered 2.5% during February, compared with 2.7% in the previous month.

Separate data showed that output prices for the Producer Price Index (PPI) grew 2.6% year-on-year last month, versus a 2.8% rise in January, while input prices increased 3.4%, down from 4.5% in the first month of 2018.

By 09:50 am GMT, the GBP/USD pair inched up 0.06% to $1.4032.