UK consumer price inflation eased unexpectedly in February driven by falling prices of clothing, second-hand cars and games, data from the Office for National Statistics revealed on Wednesday.

Consumer price inflation eased to 0.4 percent from 0.7 percent in January. The rate was forecast to rise to 0.8 percent.

Month-on-month, consumer prices edged up 0.1 percent, in contrast to January’s 0.2 percent fall. This was weaker than the economists’ forecast of 0.5 percent.

Clothing and footwear prices dropped 1.5 percent on month due to increased discounting. Downward contributions to inflation also came from traditional toys and computer games.

Excluding energy, food, alcoholic beverages and tobacco, core inflation eased to 0.9 percent in February from 1.4 percent in January.

The drag on consumer price inflation in February from the COVID-19 lockdown will delay the rebound in inflation to 2.0 percent and perhaps prompt the markets to reconsider their view that interest rates will rise next year, Paul Dales, an economist at Capital Economics, said.

Another report from ONS showed that output prices increased for the second month in a row and was the highest annual rate since August 2019.

The annual rate came in at 0.9 percent versus +0.1 percent in January and the expected rate of 0.3 percent. The largest upward contribution to output price inflation came from food products and other manufactured products.

Month-on-month, output prices grew 0.6 percent, faster than the 0.8 percent rise in January. Economists had forecast the rate to ease to 0.3 percent.

At the same time, input price inflation accelerated to 2.6 percent, in line with expectations, from 1.6 percent in January.

On month, prices grew 0.6 percent after climbing 1 percent a month ago. Prices were expected to gain 0.7 percent.

Another report from the ONS showed that average house price inflation eased to 7.5 percent in January from 8 percent in December.

On a monthly basis, house prices decreased 0.5 percent versus a 0.1 percent rise in the same period a year ago.

The material has been provided by InstaForex Company –

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.