UK inflation rate drops slightly to 2.8% as household prices decline

The United Kingdom’s inflation rate dropped slightly to 2.8 percent in February, down from 3.0 percent in January.

According to the Office for National Statistics (ONS) on Wednesday, lower clothing and household prices helped to ease the rate of price increases in the country.

The agency said the largest downward contribution to the monthly change in both consumer prices index, owner occupiers’ housing costs (CPIH) and consumer price index (CPI) annual rates “came from clothing and footwear, housing and household services, and recreation and culture”.

“The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.7% in the 12 months to February 2025, down from 3.9% in the 12 months to January,” ONS said.

“On a monthly basis, CPIH rose by 0.4% in February 2025, compared with a rise of 0.6% in February 2024.

“The Consumer Prices Index (CPI) rose by 2.8% in the 12 months to February 2025, down from 3.0% in the 12 months to January.

“On a monthly basis, CPI rose by 0.4% in February 2025, compared with a rise of 0.6% in February 2024.”

Grant Fitzner, ONS chief economist, said clothing prices, particularly for women’s clothes, were the biggest driver for the decline in inflation.

“This was only partially offset by small increases, for example, from alcoholic drinks,” he said.

Also, food and non-alcoholic beverage prices rose by 3.3 percent year-on-year, unchanged from the previous month.

ONS said alcohol and tobacco prices rose by 5.7 percent in February 2025, up from 4.9 percent the previous month.