Price rises in the U.K. moderated by more than anticipated in February, official figures showed Wednesday, in a boost for Treasury chief Rachel Reeves before she delivers a statement to lawmakers about the state of the public finances.
The Office for National Statistics said consumer price inflation fell to 2.8% from 3% the previous month. Most analysts had expected a more modest decline to 2.9%.
The agency said the price of clothes, particularly women’s clothes, was the biggest driver for this fall.
The latest figures mean the cost of living is still rising for households across the U.K. — and inflation remains above the Bank of England’s 2% target — but at a much slower rate than in recent years.
Last week, the bank kept its main U.K. interest rate unchanged at 4.50% even though the economy is barely growing and the nation faces more uncertainty in light of the tariff policies being enacted by the Trump administration in the U.S.
The bigger-than-forecast inflation drop could provide some relief for Reeves as she prepares to deliver her spring statement on Wednesday afternoon.
She is expected to announce spending cuts for some government departments and respond to weaker economic growth projections from the independent forecaster.
