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mpc: 22 CPI inflation had been 1.3% in February, slightly lower than expected. Goods prices were no longer falling and the gap between goods and services price inflation had narrowed. This was despite the likely impact of recent sterling appreciation on the prices of imported goods and the continuing productivity growth differential in favour of goods production. Inflation pressures in the supply pipeline were muted. Although the input price balance from the CIPS manufacturing survey had reached its highest level since July 1995, the ONS measure of input price inflation had remained subdued. It was possible that the ONS measure covered a greater range of inputs than did business survey respondents: for example, the official data included the prices of imported parts and equipment such as electronic components and office machinery parts and accessories, which ­ in contrast to the prices of many raw materials ­ had been falling. Oil prices had risen sharply in US dollar terms, but sterling's appreciation this year would offset some of the impact, as would the postponement of higher fuel duty.