UK inflation falls to 2.8% in February in boost to chancellor

Spring Forecast takes place today

Linus Uhlig
clock • 2 min read

UK inflation fell further than expected in February, dropping from 3% to 2.8%, as Chancellor Rachel Reeves prepares to deliver her Spring Forecast later today (26 March).

According to the Office for National Statistics (ONS), the UK Consumer Prices Index (CPI) fell unexpectedly to 2.8% in February, while core inflation continued to remain sticky at 3.5%.  The figures for the 12 months to February came in slightly below the 2.9% forecast by economists polled by Reuters and marked a 0.2 percentage point drop from January's 3% levels.  The readings will leave the chancellor and the Bank of England (BoE) "somewhat relieved", said Aberdeen's deputy chief economist Luke Bartholomew.  In response to the data, Darren Jones, chief secretary to the Treasury, ...

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