Can't interrupt python with Ctrl-C

The following python script cannot be interrupted with Ctrl-C:

def f():
  a=b=0
  while 1:
    if a<b: pass
f()

From the command line if you type

$ python nobreakbug.py

then Ctrl-C doesn't work. (It can be interrupted with Ctrl-\)

Reproducible: always
Expected behaviour: Ctrl-C interrupts the command line script
Actual behaviour: Ctrl-C just causes ^C to be printed and the script continues to run

ProblemType: Bug
DistroRelease: Ubuntu 14.04
Package: python 2.7.5-5ubuntu3
ProcVersionSignature: Ubuntu 3.13.0-27.50-generic 3.13.11
Uname: Linux 3.13.0-27-generic x86_64
ApportVersion: 2.14.1-0ubuntu3.2
Architecture: amd64
CurrentDesktop: KDE
Date: Mon Jun 23 22:27:01 2014
InstallationDate: Installed on 2014-05-25 (29 days ago)
InstallationMedia: Kubuntu 14.04 LTS "Trusty Tahr" - Release amd64 (20140416.1)
SourcePackage: python-defaults
UpgradeStatus: No upgrade log present (probably fresh install)