Inflation’s Flight Path: Slipping but Not Swooping
Monthly Snapshot
- Annualised inflation dropped to 2.8% in February (a tidy slide from 3.0% in January).
- Core inflation eased to 3.5% over the year to February, a step down from 3.7%.
Market Pulse
Trading Economics had tipped the scales at 2.9%—so the real numbers are a hair lighter and feeling a bit more fragrant.
Expert Take
“Falling inflation is a welcome bit of good news,” says Nicholas Hyett, Investment Manager, Wealth Club.
He adds, “While the Bank of England is still a ways from its 2% target, the brisk decline could open the door to future rate cuts if the economy needs a boost.”
Hyett notes, “It’s a double‑edged sword: it could signal a healing of supply glitches or a nosy downturn in demand.”
“The tricky part for the Chancellor in the Spring Statement is the pockets where inflation stays high—these could sting voters the most,” he warns. Rental costs, for instance, rose 7.4% year‑on‑year to February—wow, still sky‑high.
Heads‑Up for April
Upcoming changes to National Insurance and the National Living Wage might push prices higher again, so keep your eyes peeled.
Bottom Line
Every data point feels like a silver cloud shrouded in a gloomy lining—yet that’s the narrative we’re living through.
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