UK Inflation Rate Slows to 7-Month Low in February

The rate of inflation across the UK fell to 2.7 percent in February 2018 from 3 percent in the previous month and below market expectations of 2.8 percent. It was the lowest rate since July last year.

Year-on-year, prices rose at a slower pace for: transportation (2.8 percent vs 3.4 percent in January); recreation and culture (3 percent vs 3.3 percent); restaurants and hotels (2.5 percent vs 3.1 percent); food and non-alcoholic beverages (3 percent vs 3.7 percent). Meanwhile, inflation picked up for clothing and footwear (3.9 percent vs 3.4 percent) and was unchanged for housing, water, electricity, gas and other fuels (at 2.2 percent) and miscellaneous goods and services (at 0.8 percent).

The consumer prices index including owner occupiers’ housing costs (CPIH) rose by 2.5 percent in February, easing from a 2.7 percent increase in January.

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, declined to 2.4 percent in February from 2.7 percent in January, also below market consensus of 2.5 percent.

On a monthly basis, consumer prices rose 0.4 percent in February after decreasing 0.5 percent in January, and compared with expectations of a 0.5 percent gain. Prices rose for transport (0.5 percent), recreation and culture (0.3 percent), restaurants and hotels (0.1 percent) and food and non-alcoholic beverages (0.1 percent).

UK Inflation Rate Slows to 7-Month Low in February

ONS | Joana Ferreira |
3/20/2018 9:47:26 AM