United Kingdom: Inflation edges down over-four-year low in February
March 25, 2014
In February, consumer prices increased 0.5% over the previous month, which contrasted the 0.6% decline observed in January. February's increase was in line market expectations of a 0.5% rise. The rise was mainly driven by an increase in prices for furnishings, household equipment and routine house maintenance as well as for clothing and footwear. In spite of the higher monthly figure, annual inflation edged down from 1.9% in January to 1.7% in February, which marked the lowest level since October 2009. Meanwhile, annual average inflation inched down from 2.5% in January to 2.4% in February. In its latest inflation report from February, the Bank of England projects that inflation will average 2.2% in both 2014 and 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 2.3% in 2014, which is unchanged from last month's forecast. For 2015, the panel forecasts inflation to average 2.3%.