Inflation in the UK in February slowed to the lowest since September 2021

According to the UK's National Statistics Office, consumer prices rose 3.4% year-on-year in February, which was the lowest since September 2021.

This growth turned out to be slightly lower than analysts' expectations, according to which inflation was expected to reach 3.5%. Thus, the inflation rate has significantly decreased compared to January, when inflation reached 4%. 

On a monthly basis, prices rose by 0.6% after a January drop of the same percentage, while the analytical consensus predicted an increase of 0.7%.

Core inflation, excluding the cost of food, alcohol, tobacco and energy, also rose by 4.5% year-on-year, which was the lowest since January 2022, and by 0.6% month-on-month. 

The retail price index (RPI), important for determining salary negotiations, showed a slowdown in growth to 4.5% year-on-year from 4.9% in January, reflecting differences in accounting for housing costs, air fares, insurance and gasoline prices between the CPI and RPI indices. The RPI increased by 0.8% compared to January, when it was marked by a decrease of 0.3%.