According to the National Statistical Office (ONS), consumer prices in the UK increased by 2.8% year-on-year, which was a slowdown in inflation compared with 3% in January. Analysts had expected an average price increase of 2.9%. Relative to the previous month, consumer prices increased by 0.4% in February, while in January there was a decrease of 0.1%. The Core inflation Index (CPI Core), which excludes the cost of food, alcohol, tobacco and energy, increased by 3.5% over the year and by 0.4% over the month. In January, this figure was 3.7%, while the monthly change decreased by 0.4%. Meanwhile, retail price growth (RPI) slowed to 3.4% year-on-year in February, compared with 3.6% in January. This index is used by British employers for salary negotiations. The difference in the dynamics of the CPI and RPI indices is explained by the fact that RPI takes into account housing costs, and also has different weights for air fares, insurance, and gasoline prices. In February, the RPI index increased by 0.6% compared to the previous month, after declining by 0.1% in January.
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