According to the Office for National Statistics (ONS), UK consumer prices recorded a slightly lesser increase than expected at 3.4% annually in February. This represents a deceleration from January’s 4% growth, marking the lowest inflation rate since September 2021. Notably, a group of economists surveyed by Reuters had estimated an annual inflation rate of 3.5%.
When factors such as energy, food, and tobacco costs are excluded, core inflation demonstrated a slowdown as well, descending to 4.5% from 5.1% observed in January. The same Reuters survey suggested a prediction of 4.6%.
As these figures were revealed just a day ahead of the Bank of England’s interest rates decision announcement, they held significant importance. Services inflation, a metric diligently observed by the Bank, dipped to 6.1% from 6.5% in January, as reported by the ONS. – Reuters