UK consumer price inflation was cooler than expected in February, according to new data from the Office for National Statistics on Wednesday.
The consumer price index rose 3.4% in February from a year before, having increased 4.0% annually in January.
Inflation had been expected to decelerate to 3.6%, according to FXStreet-cited market consensus, meaning that the reading was below expectations.
Consumer prices rose by 0.6% in February from January. They had been expected to rise at a monthly pace of 0.7%, according to FXStreet. Prices had fallen by 0.6% in January from December.
The UK inflation rate hit a recent peak of 11.1% in October 2022. The Bank of England has a 2% inflation target, with the current rate still double that.
The BoE will announce its next interest rate decision on Thursday. Markets are expecting to the bank to keep rates unchanged.
Producer prices fell by 2.7% on-year last month, the pace of decline slowed from a revised fall of 2.8% in January. February’s data was in line with FXStreet consensus.
On a monthly basis, producer prices fell by 0.4% in February from January, defying expectations of a 0.2% rise. They had fallen 0.1% in January from December.
Also on Wednesday, the ONS released the retail price index.
It rose by 4.5% annually in February, following a 4.9% rise in January. The data was in line with FXStreet consensus.
Month-on-month, the retail price index edged up by 0.8%, having fallen by 0.3% in January from December.
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