As expected, consumer price inflation saw a further increase in the first two months of this year, with annual HICP inflation reaching 2.0% in February, after 1.9% in January and 1.7% in December 1999. The rise this year is largely accounted for by a further increase in oil prices and its effect on energy prices in the HICP.
It is reinforced by base effects from declining oil prices at the turn of the year 1998/99. Oil prices increased further in early March, and in so doing will continue to place upward pressure on consumer prices in the short term.