UK inflation falls more than expected as clothing prices drop

The UK inflation fell more than expected in February, inspired by the fall in clothing and shoes prices due to unusually high number of sales.

According to the National Statistics (ONS) office, inflation declined to 2.8% at the rate of 3% in January.

The latest figures come beyond the spring statement of Chanhel Reeves, where it will determine its economic plans.

ONS chief economist Grant Fitzner said that women’s clothes were “the biggest driver for the collapse of this month”.

He said, “It was only partially offset by small growth, for example, from alcoholic beverages, he said.

Total prices for clothes and shoes fell in February since 2021, which also affects children’s clothes and accessories such as hats and scarves.

ONS stated that another factor was a high number of clothing sales. The end of the January sales and the spring range entry into the shops usually stops discounting in February, but this year did not happen.

Economists voted by Reuters expected that inflation – which measures the rate at which prices increase – will decrease by 2.9% in February. However, despite the larger than the expected decline, the figure is still above the target of 2%of the Bank of England.

The rate of increase in price is also expected to increase in the coming months, the councils are all set to grow in April with tax and energy and water bills.

Furthermore, a recent survey of ONS found that almost half of the business is considering an increase in prices as they brace to increase the taxes of next month and increase the wages of national living.

Susanah Streater, head of money and markets in Hargrevs Lansdowne, said that there was no possibility of cutting rates in their next meeting of Bank of England as the fall of February was “not a huge change” and inflation “is still quite above the target”,

“Although policy makers do not want to keep a lot of rates in view of the economy stagnation, they are more likely to come in June and are ready to be cautious with one rate cut later,” he said.

Reeves will address Parliament on Wednesday afternoon with his spring statement in Parliament, Expected to cut more for welfare expenses,

He is also expected to confirm downgrade for prophecies of official economic development.

Some economists have expressed concern about the possibility of ‘stability’, where prices grow faster than the central bank’s target but the economy fails to grow.

Lindsay James of Wealth Manager Quilter said, “Economic growth is minimal and the risk is going backwards, but whether inflation should refuse to return to 2% target, it is difficult to see what the bank of England can do with interest rates.”

The Chief Secretary of Treasury Darren Jones said that the government’s “number one mission is kickstarting growth” and “promised to go further and faster on development through our plan for change.

Shadow Chancellor Mail Struid stated that Conservatives “left the target with inflation blast in July and urged Reavs to” take immediate action “in his spring statement or” pay the price of working families “.

Liberal Democrats said that inflation figure “There will be no rest for millions of families across the country”.