UK Inflation Falls to 2.8% as Spring Statement Looms

February's inflation drop, driven by lower clothing prices, offers temporary economic relief ahead of expected April price hikes.

The UK's inflation rate declined to 2.8% in February 2025, down from 3% in January, according to the Office for National Statistics.
Clothing prices, particularly women's apparel, were the largest contributors to the inflation decrease, with retailers engaging in heavy discounting amid weaker sales.
Economists predict inflation will rise again in April due to government-set price increases on energy, water, and council tax, potentially peaking at 3.7% in September.
The Bank of England has maintained interest rates at 4.5%, balancing inflation control with concerns over economic stagnation and weak growth.
Chancellor Rachel Reeves is expected to announce spending cuts in her spring statement today, responding to fiscal challenges and rising borrowing costs.