UK inflation remains steady despite price rises in clothing and footwear

UK fashion prices saw notable upward pressure in February, with clothing and footwear costs rising 0.9% for the month - their highest level since March 2025  - after remaining flat in January.

It comes as UK inflation flatlined at 3% last month prior to the impact of the Iran war, according to official figures.

The rate of Consumer Prices Index (CPI) inflation was unchanged from the level reported in January, the Office for National Statistics (ONS) said. It was in line with predictions from economists.

However, the steady picture for inflation does not yet reflect the impact of the conflict in the Middle East on the cost of living, with the first attacks taking place at the very end of February.

Oil and gas prices have jumped in recent weeks due to the conflict and other goods prices could also be affected by disruption to shipping through the Strait of Hormuz.

ONS Chief Economist Grant Fitzner said: “After last month’s slowdown, annual inflation was unchanged in February as various price movements offset each other.

“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.”

Economists said on Wednesday that inflation is now set to accelerate over the coming months as the impact of the conflict feeds into the price of goods.

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.

“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.”

Luke Bartholomew, Deputy Chief Economist at Aberdeen, added: “Today’s inflation report is little more than a relic of the world before the Iran conflict.

“While the February report was broadly in line with expectations, and confirms that inflation was on a path back to 2%, the outlook for inflation has radically changed.”