UK Inflation Holds Steady As February CPI Matches Forecasts

Inflation Snapshot
The latest figures suggest inflation remains sticky despite easing energy costs. Core inflation continues to hover above headline CPI, highlighting underlying price pressures in services and non-energy goods.

Consumer Price Index Trends
Headline CPI rose 3.0% year-on-year, exactly matching forecasts. On a monthly basis, CPI increased 0.4%, reflecting modest price growth across consumer categories. Core CPI climbed 3.2% year-on-year, slightly above expectations, and 0.6% month-on-month, underscoring resilience in underlying demand.

Retail Price Index Update
The Retail Price Index (RPI) showed a 0.4% monthly increase, slightly below the 0.5% forecast, while annual RPI growth stood at 3.6%, just under the 3.7% consensus. RPIX, which excludes mortgage interest payments, rose 0.4% month-on-month and 3.5% year-on-year.

Key Highlights

• UK CPI +3.0% YY, in line with poll
• Core CPI +3.2% YY, above forecast
• CPI +0.4% MM, matching expectations
• RPI +3.6% YY, slightly below poll
• RPIX +3.5% YY, steady growth

Sources: Reuters, UK ONS data