LONDON, March 21 (Reuters) - Sterling jumped 0.8 percent to its highest level in three weeks on Tuesday, after data showed British inflation last month shot past the Bank of England’s 2 percent target for the first time since the end of 2013.
Consumer prices leapt by a stronger-than-expected 2.3 percent in annual terms, beating expectations of a 2.1 percent rise, and up sharply from 1.8 percent in January, the Office for National Statistics said.
The pound, which had already been trading up 0.4 percent at $1.2416 before the data, rose to a high of $1.2462 - its highest since Feb. 28 - after the data.
It also hit a day’s high of 86.62 pence per euro.
The internationally focused FTSE index turned negative as sterling gained, down 0.2 percent after the data.
British government futures fell around 30 ticks to 125.60, down 67 ticks on the day. (Reporting by Ritvik Carvalho; Additional reporting by Helen Reid and Andy Bruce; Editing by Jemima Kelly)