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United Kingdom Inflation February 2021

United Kingdom: Inflation falls in February

Consumer prices increased a seasonally-adjusted 0.12% in February over the previous month, swinging from January’s 0.20% fall. Looking at the details of the release, prices for recreation and culture were largely stable in February and prices for transportation grew.

Inflation fell to 0.4% in February, edging down from January’s 0.7%. Annual average inflation edged down to 0.7% in February (January: 0.8%). Core inflation fell to 0.9% from January’s 1.5%.

This year inflation is seen rising close to the Bank of England’s 2.0% target due to a combination of higher energy prices, economic recovery and supply-chain pressure linked to Brexit.

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