The UK’s annual inflation rate decreased to 3.4% in February, with significant contributions from slower price increases in food and restaurant services, according to the Office for National Statistics.
The UK’s annual inflation rate decreased to 3.4% in February, hitting its lowest point in two and a half years. This reduction was mainly due to the slowdown in the price increase of food and restaurant services, as reported by the Office for National Statistics (ONS). Despite the overall decrease, there were varied changes across different categories of goods and services.
Food items like olive oil witnessed a significant price jump of 38.9%, while sugar, pork, and pasta products also saw notable increases. In contrast, prices for cheese, fish, and low-fat milk decreased. The drinks and tobacco sector experienced price surges as well, with cocoa and powdered chocolate costs up by 22.3%, and tobacco prices increasing by 15.5%.
Utility costs showed a positive trend for consumers, with electricity prices down by 13% and gas prices decreasing by 26.5%. Additionally, there was a reduction in the cost of solid and liquid fuels. The clothing and footwear sector experienced mixed changes, with women’s clothing prices increasing by 7.1%, whereas footwear saw a modest rise of 1.4%.
In further detail, the annual food price inflation dropped to 5% in February, marking the lowest level in two years. The inflation for dining out also fell to 6.7%. Specific grocery items like potatoes saw an inflation increase to 8.5%, but the cost for crisps decreased. Negative inflation was observed in products such as whole milk and butter, indicating year-on-year price drops.
Conversely, certain sectors recorded accelerated inflation rates, including entertainment activities like cinema, theatre, and concerts, as well as the cost of women’s clothes. The pattern of inflation across various goods and services showcased the complex dynamics influencing UK inflation, reflecting diverse impacts on consumer spending and the overall economy.