UK inflation dropped in February, according to new figures from the Office for National Statistics (ONS).
Measured by the Consumer Prices Index (CPI), inflation came in at 2.8% in the 12 months to February 2025, down from 3% reported in January, and below forecasts of 2.9%.
The largest downward contribution to the change came from clothing.
Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, stood at 3.5% in the 12 months to February, down from 3.7% in January.
Martin Sartorius, Principal Economist, CBI, said: “Inflation remained firm in February, broadly in line with the Bank of England’s expectations. Looking ahead, price pressures are set to rise again in April, driven by higher energy costs, regulated price increases, and the passthrough of Autumn Budget measures.
“We continue to expect that the Monetary Policy Committee will cut interest rates at a quarterly pace over 2025, in line with its ‘gradual and careful’ forward guidance. This should help ease the strain of high borrowing costs on businesses and households.”
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