25.03.202607:14:10UTC+00UK Inflation Rate Steady at 3%

The UK’s annual inflation rate held steady at 3.0% in February 2026, unchanged from January and in line with market expectations. The largest upward contribution came from clothing, where prices rose by 0.9%—the first increase in four months. This move aligns with the usual seasonal pattern, as new spring ranges arrive in shops and typically push prices higher in February.

Inflation also picked up slightly in the housing and utilities category, with prices rising 4.6% year-on-year compared with 4.5% in January. By contrast, transport inflation eased to 2.4% from 2.7%. The average petrol price fell by 1.6 pence per litre between January and February 2026, in sharp contrast to the same period a year earlier, when prices rose by 2.0 pence per litre.

A moderation in price pressures was also evident in several other categories: food inflation slowed to 3.3% from 3.6%; recreation and culture eased to 2.5% from 2.6%; and restaurants and hotels decelerated to 4.0% from 4.1%. Services inflation edged down as well, slipping to 4.3% from 4.4%.

On a monthly basis, the Consumer Prices Index (CPI) increased by 0.4% in February, rebounding from a 0.5% decline in January and matching consensus forecasts. However, annual core inflation—which excludes volatile items such as energy, food, alcohol, and tobacco—unexpectedly ticked up to 3.2% from 3.1%.