UK CPIH and CPI Decline in February

According to the Office for National Statistics, 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 January.

CPIH increased by 0.4% monthly in February, compared to a 0.6% rise in February 2024.

Similarly, the Consumer Prices Index (CPI) increased by 2.8% year-on-year, easing from 3.0% in January. Monthly CPI growth also stood at 0.4% in February 2025, lower than the 0.6% rise recorded a year earlier.

Clothing and Housing Drive Monthly Decline in Inflation Rates

The largest downward contribution to the annual inflation rates for both CPIH and CPI came from the clothing sector, reflecting weaker price growth. For CPIH, housing and household services also exerted a notable downward influence, helping ease inflation further.

Core Inflation Continues to Moderate

Core CPIH, which excludes energy, food, alcohol, and tobacco, rose by 4.4% in the 12 months to February 2025, down from 4.6% in January. The CPIH goods annual rate slowed from 1.0% to 0.8%, while the CPIH services rate eased slightly from 5.8% to 5.7%.

Likewise, Core CPI (also excluding energy, food, alcohol, and tobacco) grew by 3.5%, down from 3.7% in January. The CPI goods annual rate dropped from 1.0% to 0.8%, and the CPI services rate remained unchanged at 5.0%.

Source: Office for National Statistics

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