Inflation in the U.K. surged in the second month of the year to a fresh high, sending real incomes lower and increasing pressure on policymakers to contain price growth, according to The Daily Telegraph. On Tuesday, the Office for National Statistics reported that the U.K. consumer price index surged 4.4% in February from 4% the month before, outpacing economists’ expectations for a 0.2% rise to reach the highest level in 28 months. The retail price inflation index also jumped, moving up 0.4% to 5.5% in February, which is the highest level since July 1991.

James Knightley of ING said the figures “increase pressure on the Bank of England” to act against price growth as core inflation moves up on the value-added tax increase. Meanwhile, a separate report from the Institute for Fiscal Studies reported that real incomes in the U.K. are set to be 1.6% lower over the three years ending in December, reversing the historical trend of 5% growth over a three-year period. The loss amounts to an average £1,080 decline in incomes over that period, and the group warned that the government’s austerity program will make the recovery slower.

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