The Workplace for Nationwide Statistics confirmed that the UK headline CPI remained unchanged at 3.0% within the twelve months to February, touchdown broadly according to expectations. Core CPI edged greater to three.2%, a sign that underlying home value pressures haven’t absolutely dissipated.
Key Takeaways
- CPI (12-month): 3.0% in February 2026, unchanged from January 2026
- Core CPI ticked as much as 3.2% from 3.1% versus expectations of holding regular
- Companies inflation eased barely to 4.3% from 4.4% — the bottom studying since March 2022
- Items inflation held regular at 1.6%; clothes & footwear was the most important upward contributor to the month-to-month change; motor fuels and alcohol & tobacco have been the most important offsetting drags
- Motor gasoline costs fell 4.6% within the 12 months to February; petrol averaging 131.6p/litre, the most cost effective since June 2021.
Word: All gasoline costs have been collected earlier than the outbreak of battle within the Center East on 28 February 2026
February’s U.Ok. inflation print seemed calm on the floor. Headline CPI staying locked at 3.0% for a second consecutive month advised the disinflation pattern that outlined a lot of 2025 has discovered a short lived plateau, moderately than reversed.
Underlying elements, nonetheless, painted a extra nuanced image of home value pressures. Easing companies inflation is now at its lowest degree since 2022, providing some encouragement for the Financial institution of England’s medium-term goal path. Housing and family companies made the most important contribution to the annual price for the eleventh consecutive month in CPI phrases.
Hyperlink to official ONS U.Ok. CPI (February 2026)
In the meantime, motor gasoline costs in February have been nonetheless reflecting the pre-conflict vitality surroundings. Meaning the drag from gasoline, which meaningfully helped preserve the newest inflation print contained, is unlikely to persist into coming months.
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Market Reactions
British Pound vs. Main Currencies: 5-min
GBP Overlay 5-min – Chart Sooner with TradingView
Sterling, which ticked briefly greater from its earlier downtrend main as much as the CPI launch, had a blended response to the numbers that did little to affect BOE coverage expectations.
GBP edged barely decrease throughout the board throughout the hour after the numbers have been printed, earlier than ultimately discovering a backside and recovering to intraday highs a few hours after the report.
The U.Ok. foreign money struggled to carry on to its beneficial properties in the direction of the latter half of the London session, although, falling 0.38% to USD and 0.14% to JPY as broader risk-off flows on geopolitical tensions remained in play whereas staying in constructive territory towards AUD (+0.19%) and CHF (+0.13%).
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