A rise in clothing prices was a key factor in the UK inflation rate remaining at 3% in February, it has been announced this morning.
The data was collected by the Office for National Statistics (ONS) before the conflict in the Middle East began. The war is expected to lead to a rise in inflation.
Chief economist of the Office for National Statistics Grant Fitzner said: "After last month's slowdown, annual inflation was unchanged.
"The largest upwards driver was the price of clothing, which rose this month but fell a year ago.
"This was offset by falls in petrol costs, with prices collected before the start of the conflict in the Middle East and subsequent rise in crude oil prices."
Responding to the latest inflation data, Stuart Morrison, Research Manager at the British Chambers of Commerce, said: “For businesses across the UK, today’s inflation data represents the calm before the storm.
“CPI of 3% in February shows an economy yet to be impacted by the shock of the Middle East conflict, with fuel prices falling. But our forecast published after the unrest began, shows that the war will delay the previously expected slowdown in inflation.
“UK firms are particularly exposed to the economic impact of the crisis in the Middle East as our electricity prices are tightly tethered to global gas prices. This will feed directly into higher costs and renewed inflationary pressure in the months to come.
“The cost of living and the cost of doing business are two sides of the same coin. The government must continue to keep all options on the table to help firms deal with rising energy bills. At the same time, tackling other cost pressures, from business rates to national insurance, must remain a key priority.”
FSTE100
The UK's flagship share index, the FTSE 100, was up 128 points at 10,060 shortly after opening this morning.
Brent crude oil futures were down 0.37% at $99.10 a barrel.
Companies reporting today
- WAG Payment Solutions - Full Year Results