United Kingdom: Inflation maintains downward trend in February
March 20, 2012
In February, consumer prices added 0.6% over the previous month, which contrasted the 0.5% price drop recorded in January. The increase was mainly driven by higher prices for clothing and footwear as well as for food and non-alcoholic beverages. Despite the monthly rise, annual headline inflation maintained the downward trend seen since September 2011 and dropped from 3.6% in January to 3.4% in February, which represents the lowest level since November 2010. Meanwhile, annual average inflation remained unchanged at January's 4.4%. According to its February Inflation Report, the Bank of England expects inflation to average 2.7% this year.