The Workplace for Nationwide Statistics confirmed that the UK headline CPI remained unchanged at 3.0% within the twelve months to February, touchdown broadly in keeping with expectations. Core CPI edged larger to three.2%, a sign that underlying home worth pressures haven’t totally dissipated.
Key Takeaways
- CPI (12-month): 3.0% in February 2026, unchanged from January 2026
- Core CPI ticked as much as 3.2% from 3.1% versus expectations of holding regular
- Providers inflation eased barely to 4.3% from 4.4% — the bottom studying since March 2022
- Items inflation held regular at 1.6%; clothes & footwear was the biggest upward contributor to the month-to-month change; motor fuels and alcohol & tobacco have been the biggest offsetting drags
- Motor gasoline costs fell 4.6% within the yr to February; petrol averaging 131.6p/litre, the most cost effective since June 2021.
Be aware: All gasoline costs have been collected earlier than the outbreak of battle within the Center East on 28 February 2026
February’s U.Ok. inflation print regarded calm on the floor. Headline CPI staying locked at 3.0% for a second consecutive month advised the disinflation development that outlined a lot of 2025 has discovered a brief plateau, quite than reversed.
Underlying elements, nevertheless, painted a extra nuanced image of home worth pressures. Easing companies inflation is now at its lowest degree since 2022, providing some encouragement for the Financial institution of England’s medium-term goal path. Housing and family companies made the biggest contribution to the annual price for the eleventh consecutive month in CPI phrases.
Hyperlink to official ONS U.Ok. CPI (February 2026)
In the meantime, motor gasoline costs in February have been nonetheless reflecting the pre-conflict vitality atmosphere. Meaning the drag from gasoline, which meaningfully helped maintain the newest inflation print contained, is unlikely to persist into coming months.
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Market Reactions
British Pound vs. Main Currencies: 5-min
GBP Overlay 5-min – Chart Sooner with TradingView
Sterling, which ticked briefly larger from its earlier downtrend main as much as the CPI launch, had a blended response to the numbers that did little to affect BOE coverage expectations.
GBP edged barely decrease throughout the board inside the hour after the numbers have been printed, earlier than finally discovering a backside and recovering to intraday highs a few hours after the report.
The U.Ok. foreign money struggled to carry on to its good points in direction of the latter half of the London session, although, falling 0.38% to USD and 0.14% to JPY as broader risk-off flows on geopolitical tensions remained in play whereas staying in optimistic territory in opposition to AUD (+0.19%) and CHF (+0.13%).
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Regular U.Ok. CPI and BOE coverage expectations did little to assist sterling as war-related inflation dangers loom. When the macroeconomic information shifts this quick, buying and selling the volatility requires deep focus—and sufficient capital to make your edge depend.
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