UK inflation unexpectedly slows as price of clothes, cars and toys fall

The UK’s rate of inflation unexpectedly eased last month amid falls in the prices of clothes, second-hand cars and toys, according to new official data. The Office for National Statistics (ONS) said the Consumer Prices Index (CPI) rose by 0.4 per cent in the 12 months to February this year.

It was down from the 0.7 per cent measurement in January and 0.6 per cent in December. 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.” The cost of clothing and footwear followed an unusual pattern during 2020. Prices normally rise between January and May, before falling until July, but last year discounting increased in March and April, probably as a response to the first lockdown.

They then remained stable until August, before increasing as usual until October. But, as large parts of the country re-entered lockdown in November, prices fell again, unusually for the time of year. Taken with a heavy price drop in January, the cost of clothing and footwear reduced by 5.6 per cent in the year to February 2021 — the biggest fall since November 2009. - Reuters