Inflation in the UK decreased in February.

Foreks - Inflation in the UK saw a slight decline in February, yet it remains significantly above the Bank of England's target, prompting policymakers to exercise caution regarding further interest rate cuts. According to data released by the UK statistics authority, consumer prices rose by 2.8% year-on-year in February, down from a 3.0% annual inflation rate in January. This modest decrease occurred slightly faster than economists had anticipated, attributed to a milder increase in energy prices and goods such as clothing and footwear.

Grant Fitzner, an economist at the agency, noted that the situation was partially offset by small increases in alcoholic beverages. The annual inflation rate in February marked the second fastest since March of the previous year, indicating ongoing price pressures on the UK economy. The Bank of England considers a 2% annual rate optimal. Service prices remained unchanged from the previous month, rising by 5.0%, while core inflation, excluding volatile food and energy prices, dropped to 3.5%. The BOE decided last week to maintain interest rates, aligning with the previous day's decision by the US Federal Reserve. Policymakers expressed that they would be "cautious and careful" while evaluating further rate cuts, given that they are reducing borrowing costs more slowly than their European counterparts. BOE Governor Andrew Bailey stated at last week's meeting, "We believe interest rates are still on a gradual path to decline."