Inflation across the UK has fallen further than expected ahead of chancellor Rachel Reeves’ spring statement later today.
The Office for National Statistics (ONS) said today that its consumer price index (CPI) was 2.8% in February 2025, slowing from 3% in January.
On a monthly basis, CPI increased by 0.4% in February 2025, compared to a 0.6% rise in February last year.
The ONS said the largest downward contribution came from clothing, with a downward effect also notable from housing and household services.
ONS chief economist Grant Fitzner said: “Clothing prices, particularly for women’s clothing, was the biggest driver of this month’s fall. This was only partially offset by small increases, for example, from alcoholic drinks.”
Economists had forecast that inflation would remain flat at 3% in February. Despite the fall, the figure remains above the Bank of England’s target of 2%.
The latest figures come ahead of chancellor Rachel Reeves’ spring statement later today when she will lay out her economic plans and provide updates on the government’s plan to go “further and faster” on delivering growth.
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