UK inflation rate falls as clothes prices drop

The UK's inflation rate unexpectedly fell to 0.4% in February, down from 0.7% in January, as the cost of clothes and second-hand cars fell.

The Office for National Statistics (ONS) said there had been a rise in the cost of petrol and diesel.

But that impact on consumer prices was more than offset by downward pressures, which also included falls in the cost of travel.

February is traditionally a month where clothing prices would rise.

However, ONS deputy national statistician, Jonathan Athow said: "The impact of the pandemic has disrupted standard seasonal patterns."

Samuel Tombs, chief UK economist at Pantheon, said that despite inflation's "sudden drop due to temporary weakness in clothing prices" he still expected the rate to exceed 2% later this year.

"The lockdown has left clothing retailers with considerable excess stock to shift. Clothing prices likely have rebounded this month, now that retailers have introduced new seasonal ranges," he said.

Economists at Capital Economics also predicted that the "drag on from lockdowns won't last" and that UK inflation is set to rise slowly over the year.

Many economists had predicted inflation in February would rise slightly to about 0.8%, pushed higher by a big rise in fuel prices.

The ONS statement that between January and February petrol prices rose by 3.6 pence per litre, and diesel prices rose by 3.4 pence per litre. Fuel prices fell in the same period last year.