British inflation hit its highest level in February in nine months as statisticians changed the way they calculate rocketing utility bills.
The Office for National Statistics said that consumer prices rose 0.7% last month, taking the annual rate to 2.5%, further above the government's 2% target, as expected.
Without the change in methodology, CPI inflation would have held steady at 2.2% as tariff increases would have been phased in over several months leading to a more gradual pick-up in inflation than the sharp jump registered last month.
Still, the figures highlight the dilemma facing the Bank of England as it confronts a slowing economy and rising price pressures.
Investors are betting the Bank will cut interest rates by a percentage points before the end of the year to shore up the economy as the credit crisis deepens.
However, the central bank may be constrained by concerns inflation will rise even higher in the coming months. Core inflation, which strips out oil and food, eased to 1.2% in February, its lowest rate since August 2006.
