UK inflation moderated to 3.4% in February, its lowest level in two years

Annual inflation rate United kingdom The rate reached 3.4% in February, which is six tenths less than the increase recorded in January and the best. Index reading since September 2021.

This is reflected in the data you published Office for National Statistics (ONS), Which indicates that the British CPI continues to moderate since it reached a record level since 1997 in October 2022 of 11.1%.

However, the decline may not be enough to Bank of England It is decided to reduce the reference interest rate tomorrow, Thursday, at 5.25%.

High costs of living

The increase in the cost of living in the UK was mainly driven by a 5% increase in the cost of food and non-alcoholic drinks, compared to 6.9% in January. While tobacco and alcohol rose 11.9%.That is, half a percentage point lower than the previous month.

AndBecause prices of all goods rise Its growth slowed to 1.1% from 1.8%, while services growth fell to 6.1% from 6.5%.

Thus, after deducting the impact of energy and fresh food, the core CPI (excluding energy, food, alcohol and tobacco) rose 4.5% year-on-year in February, compared to 5.1% in January.

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