The UK Consumer Prices Index (CPI) annual inflation rate has experienced a slight decline, settling at 2.8% over the 12 months to February 2025 – a decrease from the previous rate of 3% reported in January.
The information, disclosed by the Office for National Statistics (ONS), also noted that the CPI saw a month-on-month increase of 0.4% in February.
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This represents a smaller increment compared to the 0.6% rise recorded during the same month of the previous year.
The core CPI inflation rate, excluding energy, food, alcohol and tobacco, rose to 3.5% over the year up to February – a slight reduction from the 3.7% tallied up to January.
Clothing and footwear witnessed a downturn in its annual inflation rate by 0.6% as of February 2025 – a stark contrast to the 1.8% increase observed in the year to January. The monthly figures indicated deflation of 0.3%.
February’s data represents the first negative annual rate since October 2021.
Housing and household services saw the annual inflation rate decrease to 5.3% in February 2025 from January’s figure of 5.6%.
The month-on-month comparison showed prices had risen 0.3% – half of the increase one year previously.
In response to the ONS data, British Retail Consortium insight director Kris Hamer stated: “Headline inflation fell marginally in February, driven by marginal drops in housing and household services and clothing and footwear entering deflation. Despite continued cost pressures, namely energy price volatility, food inflation remained unchanged. There was good news as some dairy products such as milk, cheese and eggs all saw price drops on the month. Heavy clothing and footwear discounting continued into February, as fashion sales continue to suffer due to unseasonal weather throughout the month.”
“Retail operates on tight margins and it would be impossible to absorb all £5bn of new costs which hit the industry in April. Food inflation has jumped significantly in recent months and is forecast to hit 5% by the end of 2025 as a result of the costs arising from the budget.”
BRC–NielsenIQ’s recent shop price index data for February 2025 revealed that shop price deflation remained stable at 0.7% on an annual basis, and exceeded three-month average deflation of 0.8%.
