LONDON, March 20 (Xinhua) — The consumer prices index (CPI) in the United Kingdom (UK) dropped to 3.4 percent in the 12 months to February, the British Office for National Statistics (ONS) said on Wednesday.
This decrease contrasts with the January inflation rate of 4 percent, with food, restaurants and cafes contributing significantly to this decline.
According to ONS, core CPI (CPI excluding energy, food, alcohol and tobacco) rose by 4.5 percent in the year to February, down from 5.1 percent in January and much lower than its recent high of 7.1 percent in May 2023, which was the highest recorded since March 1992.
On the other hand, the CPI all services index rose by 6.1 percent in the year to February, down from 6.5 percent in January and 7.4 percent in July 2023, which tied with May 2023 as the highest rate since March 1992.
UK Prime Minister Rishi Sunak has pledged to halve inflation and alleviate living costs since assuming office.
In an interview with Financial Times, George Sweeney, a financial adviser at Finder.com, said that the latest 0.2 percent GDP growth figures and a slowdown in wage growth indicate that the government’s overall plan is making progress.
Paul Dales, the chief UK economist at the consultancy Capital Economics, said that this decline could lead the Bank of England to lower interest rates in the summer.
