UK Inflation Falls to 2.8% in February, Providing Temporary Relief

The drop, driven by lower clothing prices, comes ahead of expected price hikes in April and Chancellor Reeves's spring statement on fiscal policy.

The Office for National Statistics reported a decline in UK inflation to 2.8% in February 2025, down from 3% in January, slightly below analyst expectations of 2.9%.
Falling clothing prices, particularly for women's apparel, were the largest contributors to the decline in inflation, according to the ONS.
Core inflation, excluding volatile items like energy and food, also eased to 3.5% from 3.7% in January.
Economists predict inflation will rise again in April due to government-set price and tax increases, with a peak of 3.7% expected in September before declining in 2026.
Chancellor Rachel Reeves is set to deliver her spring statement, addressing downgraded growth forecasts and announcing spending cuts to meet fiscal rules.