UK Inflation Slows to 2.8% in February

UK’s annual inflation rate slowed to 2.8% in February, from 3% in January, giving consumers some breathing room before a potential price increase.

The Bank of England expects consumer price inflation to peak at 3.75% in the third quarter, nearly double its 2% target, driven mainly by higher energy costs, utility charges, and bus fares.

The Office for National Statistics reported that annual inflation in the services sector, closely monitored by the Bank of England, held steady at 5%, beating expectations of a fall to 4.9%.

The central bank forecast a rise to 5.1% in Wednesday’s data.