UK inflation stays at 3% in February as clothing costs rise

Inflation holds steady

UK inflation stayed at 3% in the year to February, broadly in line with expectations, according to figures from the Office for National Statistics.

The data was collected before the US-Israel war with Iran began, a development that is expected to increase the pace of price rises through higher oil costs.

Inflation measures the rate at which prices are rising. While the rate has fallen from earlier highs, prices themselves are still increasing, just at a slower pace.

What drove the figures

The largest upward pressure came from clothing prices. The ONS said clothing and footwear prices rose by 0.9% in the 12 months to February, compared with no change in the 12 months to January.

Grant Fitzner, the ONS chief economist, said annual inflation was unchanged after the previous month's slowdown. He said the biggest upward driver was clothing, with prices rising this month after falling a year earlier.

That was partly offset by lower petrol costs. Fitzner said those fuel prices were collected before the start of the conflict in the Middle East and the subsequent rise in crude oil prices.

Offsetting pressures

The ONS also said discounted alcohol helped push inflation down. Inflation for alcohol and tobacco fell to its lowest recorded rate since February 2022.

The latest figures suggest inflation has remained sticky after a period of steady falls, even before the recent jump in oil prices added fresh uncertainty to the outlook.