Economic Buzz: UK inflation holds steady as core price pressures edge higher

UK inflation remained stable in February 2026, according to data from the Office for National Statistics. The Consumer Prices Index including owner occupiers? housing costs (CPIH) rose 3.2% over the 12 months, unchanged from January. On a monthly basis, CPIH increased by 0.4%, the same rate seen in February 2025.

The Consumer Prices Index (CPI) also held steady, rising 3.0% year-on-year in February, with a monthly increase of 0.4%, matching last year?s pace.

Clothing prices were the main driver of the monthly rise in inflation, while falling motor fuel prices helped offset some of the increase.

Core inflation showed a slight uptick. Core CPIH, which excludes energy, food, alcohol and tobacco, rose 3.4% annually, up from 3.3% in January. Goods inflation under CPIH remained unchanged at 1.6%, while services inflation eased slightly to 4.2% from 4.3%.

Similarly, core CPI increased to 3.2% from 3.1%. Goods inflation stayed at 1.6%, while services inflation edged down to 4.3% from 4.4%.

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