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UK inflation falls by more than anticipated, boost to the govt ahead of key statement

26 March 2025
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UK inflation falls by more than anticipated, boost to the govt ahead of key statement
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In February, consumer price inflation in the U.K. dropped to 2.8% from 3%, with clothing prices, especially women’s clothes, driving the decline, exceeding analysts’ expectations of a 2.9% decrease. While living costs continue to rise above the Bank of England’s 2% target, the slower rate of inflation provides relief for Treasury chief Rachel Reeves ahead of her statement on public finances, where she is expected to announce spending cuts and address weaker economic growth projections. Despite economic uncertainties, the Bank of England kept its main interest rate unchanged at 4.50% as the nation faces challenges from the U.S.’s tariff policies.

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