FX.co ★ UK Inflation Holds Steady at 3.0% in February, Keeping Pressure on Bank of England

The United Kingdom’s Consumer Price Index (CPI) rose 3.0% year-over-year in February 2026, unchanged from January’s annual rate of 3.0%, according to data updated on 25 March 2026. The figure indicates that inflationary pressures remain persistent, rather than easing further, even as price growth is considerably lower than the peaks seen in recent years.

On a year-over-year basis, February’s reading compares the change in prices with February a year earlier, while January’s 3.0% pace was measured against January of the previous year. The fact that both months posted identical annual rates suggests inflation has plateaued for now, rather than continuing on a clear downward trajectory.

The stable 3.0% print is likely to factor heavily into the Bank of England’s upcoming policy discussions. While the current rate is closer to, but still above, the Bank’s 2% target, the lack of further moderation could temper expectations for imminent interest-rate cuts, as policymakers watch for more decisive evidence that underlying price pressures are easing.