UK inflation remained at 3% in the year to February, broadly in line with expectations. The latest figures from the Office for National Statistics (ONS) show that price growth has stabilised after several months of gradual decline.
The main upward pressure came from clothing and footwear, where prices rose by 0.9% over the year. This contrasts with the previous period, when prices in this category were flat. According to ONS chief economist, Grant Fitzner, this shift was the largest contributor to keeping inflation steady.
However, this increase was balanced by falling fuel costs. Petrol prices dropped, with February’s data showing the lowest average price per litre since June 2021, at 131.6p. Lower fuel costs, alongside discounted alcohol prices, helped offset the impact of rising clothing prices. Inflation for alcohol and tobacco also fell to its lowest level since February 2022.
It is important to note that while inflation has eased from its peak in recent years, prices are still rising. The difference is that they are increasing more slowly, rather than falling.
The February data was collected before the escalation of tensions involving Iran, which has since pushed up global oil prices. This is expected to feed through into higher costs for energy, food, and leisure, as businesses pass on increased expenses.
The ONS also introduced supermarket scanner data for the first time, replacing some manual price collection. This change is expected to improve the accuracy of food inflation measurements going forward.
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