CPI inflation rate drops to 0.4% in February with clothes and cars getting cheaper after renewed lockdown – easing fears over rising prices
- Headline CPI rate of inflation fell from 0.7 per cent to 0.4 per cent in February
- Suprised economists who had been expecting a slight uptick in the annual rate
- Clothes and second hand cars fell in price after the country went into lockdown
The inflation rate dropped to 0.4 per cent in February amid the renewed lockdown, figures showed today.
The headline CPI measure fell from 0.7 per cent as the costs of clothing and second-hand cars dipped.
The latest data were well below the expectations of experts, and could ease fears about prices running out of control.
There have been concerns about the economy overheating as restrictions are eased after the government’s huge spending spree to keep the economy afloat during the pandemic.
The headline CPI measure fell from 0.7 per cent as the costs of clothing and second-hand cars dipped
ONS Deputy National Statistician for Economic Statistics Jonathan Athow said:
‘A fall in clothing prices helped to ease inflation in February, traditionally a month where we would see these prices rise, but the impact of the pandemic has disrupted standard seasonal patterns.
‘Elsewhere there were falls in the price of second-hand cars.
‘However, prices at the pump rose this month, compared with a fall this time last year.’