UK inflation holds at 3.0% in February

VoM News Desk | March 25, 2026 | 12:43 PM IST | Breaking News, Business, World | Follow on Google News

UK inflation holds at 3.0% in February

LONDON, March 25 (Reuters) – British consumer price inflation held at an annual rate of 3.0% in February, unchanged from January’s rate, official figures ​showed on Wednesday, ahead of a likely upward ‌lurch as war in the Middle East pushes up prices.

Economists polled by Reuters had expected inflation to remain at 3.0%, its ​lowest level since March 2025.

Before the U.S.-Israeli attack ​on Iran at the end of February, the ⁠Bank of England had forecast that inflation would ​fall to close to its 2% target in April, when ​changes to regulated household energy bills and other prices take effect.

But last week the BoE sharply increased its inflation forecast, predicting it ​would rise towards 3.5% by the middle of the ​year.

A survey published on Tuesday showed inflation expectations among the British public ‌surged, ⁠adding to the BoE’s challenge.

While most households’ energy tariffs are currently capped, new prices are due to take effect in July and manufacturers have already reported the sharpest ​jump in costs ​since 1992, ⁠which may soon be passed on to consumers.

Financial markets on Tuesday were betting on ​nearly three quarter-point interest rate rises by ​the ⁠BoE this year, though many economists think the central bank will keep rates on hold due to the headwinds ⁠to ​growth from higher energy costs.

VoM News Desk

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