United Kingdom Inflation in February 2025

The United Kingdom inflation rate fell slightly 2.8% in February, arriving just below the expectations of analysts, according to data published by the Office of National Statistics (ONS) on Wednesday.

The economists surveyed by Reuters had anticipated that the consumer price index would reach 2.9% in the twelve months until February.

The inflation rate had increased considerably to 3% in January, after falling to 2.5% lower than expected in December.

Central inflation, which excludes more volatile energy, food, alcohol and tobacco prices, increased 3.5% in February, below 3.7% in January.

“The deceleration in the rate in February 2025 reflected descending contributions of four divisions and ascending contributions of five divisions. The highest downward contributions come from clothing and footwear, homes and domestic services, and recreation and culture.” The agency said.

Pound sterling 0.1% fell against the dollar, reaching 1,2925 after data release.

The latest data will be food for thought for the Bank of England, that left the interest rates to 4.5% at their monetary policy meeting last weekAs the United Kingdom’s economy dealt with uncertainty about global commercial policies, possible tariffs, a temporary increase provided for inflation and imminent stagnation at home.

In a statement at that time, the Central Bank said that “the uncertainty of global commercial policy has intensified, and the United States has made a range of tariff advertisements, to which some governments have responded.”

“Other geopolitical uncertainties have also increased and the indicators of the volatility of the financial market have increased worldwide,” he added.

The Boe had already warned in February that I expected inflation to increase to 3.7% In the third quarter of this year, as energy costs accelerate. It also reduced its 2025 growth forecast for the United Kingdom to 0.75%.

Inflation data will be closely observed by the British government while the Minister of Finance, Rachel Reeves, is later prepared on Wednesday to update legislators about their expenses and tax plans, as well as the economic perspectives of the Nation.

Reeves is expected to announce billions of pounds in expenses of expenses such as a way to close a budget deficit caused by an increase in loan costs since its first prosecutor plan published last autumn.

The Minister of Finance has already promised to comply with its “fiscal rules” self-imposed to ensure that tax revenues comply with daily expenditure and that public debt falls as a part of economic production by 2029-30.

Reeves’ Spring statement It will be presented in Parliament around 12.30 pm of London’s hour, and will be delivered together with the latest economic forecasts of the Office of Budget Responsibility (OBR), the country’s public finance guard.

The OBR is As reported, expected To degrade the United Kingdom’s growth forecasts by 2025 and reduce its previous estimate of 2%, with a lower production that pressed the government’s indebtedness requirements and forced Reeves to reduce public spending by around 10 billion ($ 12.96 billion).