Wed, 26 Mar 2025

Wed, 26 Mar 2025 Clothes sales push inflation down more than expected

Inflation fell to 2.8% in February, driven by cheaper women's clothing.

* Inflation fell to 2.8% in February, down from 3% in January
* The decrease was driven by a drop in clothing and shoe prices due to high sales
* Women's clothing was the biggest driver of the fall, with prices dropping for the first time since 2021
* Unseasonably high number of clothing sales also contributed to the decline
* Despite the bigger-than-expected fall, inflation remains above the Bank of England's target of 2%
* Price rises are expected to increase in April due to council tax and energy/water bill increases
* Almost half of businesses consider price hikes as they prepare for next month's tax rises and National Living Wage increase
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