LONDON: British inflation unexpectedly fell last month, reflecting the biggest annual drop in clothing prices since 2009 and cheaper second-hand cars, toys and computer games, though most economists see sharper price rises ahead.
"From April we'll also see the headline rate of inflation leap on energy prices, partly because we'll no longer be comparing petrol prices to pre-pandemic levels, but also because the household energy price cap will rise to 9per cent," ING economist James Smith said.Few economists expect the rise in inflation - which may include a small overshoot of its 2per cent target - to prompt the British central bank to begin raising interest rates.
Clothing and footwear prices fell between January and February for the first time since 2007 and are 5.7per cent lower than a year before, the biggest annual decline since November 2009, reflecting a widespread drop in demand due to the pandemic. Children's toys such as dolls and scooters, as well as computer games - where prices fluctuate significantly - were also cheaper, the ONS said.
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