Inflation, as measured on the consumer price index (CPI) measure of inflation, was reported unchanged at 3% in February 2026\u00a0according to the Office for National Statistics (ONS).<\/p>\n
The biggest contributor to inflation in February was clothing and footwear (0.6), while falls in alcohol and tobacco (-0.1) was the biggest detractor.<\/p>\n
Grant Fitzner, chief economist at the ONS explains the context:<\/p>\n
\u201cAfter last month\u2019s slowdown, annual inflation was unchanged.\u00a0 This was offset by falls in petrol costs, with prices collected before the start of the conflict in the Middle East and subsequent rise in crude oil prices.\u00a0 A fall in the cost of alcoholic drinks due to promotional activity, compared with a rise last year, was also a downward driver, while little change in food prices, again compared with a small rise this time last year, added further downward pressure.\u201d<\/p>\n
Pre-crisis figures<\/strong><\/p>\n As Fitzner mentions, the figures for February are perhaps not a good indicator of the current situation in the UK economy.<\/p>\n The conflagration in the Middle East has had fast-acting effects on the price of petrol and diesel at forecourts and could likely feed through to energy prices in the coming months.\u00a0\u00a0The impact of this won\u2019t be felt immediately as the energy price cap protects households from instant price changes. However, the energy regulator Ofgem adjusts its price cap every three months, with the next announcement due on 27 May 2026.\u00a0\u00a0The Government for its part has\u00a0so far ruled out\u00a0any broad-based support for households, unlike during the 2022 energy crisis, instead opting to look at helping households in receipt of benefits.<\/p>\n The effect of the crisis has also been\u00a0felt in the mortgage market\u00a0where lenders have been repricing their products upwards, while the Bank of England held its base rate at 3.75% – with an\u00a0unusual unanimous decision\u00a0reflecting the uncertainty of the situation.<\/p>\n What is as important as ever here it to not make any rash decisions on the basis of short-term events. Long-term financial success relies on long-term planning, managing risks and ensuring your money has the best possible chance for long-term growth and security.\u00a0\u00a0If you have any doubts, concerns or questions relating to the information in this article, please don\u2019t hesitate to reach out.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Inflation, as measured on the consumer price index (CPI) measure of inflation, was reported unchanged at 3% in February 2026\u00a0according to the Office for National Statistics (ONS). The biggest contributor to inflation in February was clothing and footwear (0.6), while falls in alcohol and tobacco (-0.1) was the biggest detractor. Grant Fitzner, chief economist at the ONS explains the context: \u201cAfter last month\u2019s slowdown, annual inflation was unchanged.\u00a0 This…<\/p>\n