British inflation is expected to have relieved back in February in the “calm before the storm” of the Bill Hikes setting next month.
The National Statistics Office will publish the latest inflation data on Wednesday, the same day the chancellor will deliver his spring declaration to parliament.
Most analysts believe that consumer prices index (CPI) inflation comes in 2.9% for February, down from the 3% registered for January.
That would mean the rate will remain over the Bank of England’s 2% target.
Economists believe that lower rental inflation will be a major factor that draws overall inflation as the price rises on available homes continues to facilitate.
Flight prices could also have risen less sharply in February after a rebound the previous month, although there may be some volatility where prices were wandered during the school half -time, experts suggested.
On the other hand, hotel costs are expected to have jumped higher last month, which puts pressure on overall inflation.
Cinema, live music and theater awards are expected to have risen in February.
The latest Wed data comes the same day Chancellor Rachel Reeves delivers her spring declaration, where she is expected to advertise cuts for some government departments.
Signs of ease inflation could come as good news to Mrs. Reeves in the midst of the efforts to reduce the cost of living.
However, experts have warned that the tide is set to turn next month when prices for the new tax year take effect on bills such as energy, water and advice tax.
“February should be calm before the storm of annual reset of prices, as the state price increases and tax increases increase the CPI inflation to the headline to 3.5% in April,” said Robert Wood and Elliott Jordan-Doak, senior British economists for Pantheon macroeconomics.
They think inflation will peak in September – but the risk of future pressure has increased as companies have indicated that they could pass on higher taxes to customers through price increases.
Sanjay Raja, senior economist for Deutsche Bank, said CPI -Inflation for this month is likely to be pushed lower.
“But then we see a steep increase in the price press, heading CPI, which peaked nearly 4% years to years in September,” he said.
“The good news is that we still expect the inflation pressure to slowly fall and fall to about 2% in the first half of 2026.
“But upward risks for our 2026 projections are rising.”