British inflation falls as clothing prices hit biggest annual drop since 2009
Figures released on Wednesday showed British inflation on a sudden drop in February as clothing prices hit their biggest annual drop since 2009, complemented by cheaper second-hand cars.
A 0.4% decline was recorded in the month of February for the annual rate of consumer price inflation. This came from a 0.7% fall in January and against the 0.8% improvement projection by economists.
Still part of the pandemic drag, clothing and footwear prices dipped between January and February, for the first time since 2007. The figure was also 5.7% lower than the previous year, marking its biggest annual drop since November 2009.
Following the release of the figures, the sterling softened slightly against the dollar.
Buoyed by hikes in oil prices, regulated household energy prices, and other one-off effects, inflation in the United Kingdom is expected to improve sharply en route to the Bank of England’s 2% target in the first two quarters of 2021.