UK Inflation Holds at 3% in February as War Clouds Loom

UK CPI inflation held at 3% in February, but economists warn of a significant jump following the Middle East conflict and surging oil prices.

By: AXL Media

Published: Mar 25, 2026, 6:21 AM EDT

Source: Reuters

The "Pre-War" Data Snapshot

February's figures represent the final look at the UK economy before the full impact of the U.S.-Israeli military action in Iran.

Stable Headline Rate: Inflation held at 3.0%, the same as January.

Services Inflation: A key metric for the Bank of England (BoE), services inflation fell to 4.2% (from 4.4%), its lowest level since early 2022.

Core Inflation Surprise: Excluding volatile food and energy, core inflation actually rose slightly to 3.2% (from 3.1%), indicating underlying price pressures remain "sticky."

The Looming "Iran War" Spike