- The Consumer Prices Index (CPI) rose by 3.0% in the 12 months to February 2026, unchanged from the 12 months to January.
- On a monthly basis, CPI rose by 0.4% in February 2026, the same rate as in February 2025.
- Clothing made the largest upward contribution to the monthly change to CPI annual rates; motor fuels made the largest, offsetting, downward contribution.
- Core CPI (CPI excluding energy, food, alcohol and tobacco) rose by 3.2% in the 12 months to February 2026, up from 3.1% in the 12 months to January; the CPI goods annual rate was unchanged at 1.6%, while the CPI services annual rate eased slightly from 4.4% to 4.3%.
The ONS has released inflation figures. More detail can be found here: Consumer price inflation, UK – Office for National Statistics
Emma Wall, Chief Investment Strategist, Hargreaves Lansdown:
“As expected by the market, inflation held steady in February. Today’s print is not the influential one it usually is for bond and equity pricing. Instead, the Iran war, oil prices and where inflation may go from here dominates. Gilt yields, having hit highs earlier in the week, last seen in the global financial crisis, have tempered on the hope of resolution. We think the conflict is likely to impact next month’s data, but it will be transient, and therefore unlikely to force Bank of England policy. We don’t think the next interest rate decision is a hike, rather a pause before returning to the cutting cycle.”
Helen Morrissey (pictured above), head of retirement analysis, Hargreaves Lansdown:
“Inflation remained steady this month, but current geopolitical instability means we will likely see it start to rise in the coming months. This will have an impact on everyone, including pensioners, who need to make sure that their pension income is robust enough to see them through inflationary ups and downs.
Retirees on the lookout for a guaranteed income will find annuities continue to offer good value. The latest data from HL’s annuity search engine shows a 65-year-old with £100,000 pension can get up to £7,644 per year from a single life level annuity, with a five-year guarantee. This can act as a solid basis for retirement income alongside the state pension, but it’s important to say that level annuity incomes don’t change over time and what might be a good income now may look sorely stretched during a time of high inflation. Inflation-linked products are available – one that rises by 3% per year can give a starting income of up to £5,781 per year. This is demonstrably lower than a level product, and you do need to consider how long it will take the income to catch up to that of a level product.
Income drawdown can play a huge role in helping retirees manage inflation long term. By remaining in the markets, it gives their investments time to grow further, though it’s important to say markets can also be volatile. A flexible approach is important to make sure you aren’t taking too much out and potentially depleting capital. Mixing and matching annuities and drawdown could be a great option. You can secure a level of guaranteed income with an annuity and then keep some flexibility when drawing an income from drawdown. You can then consider annuitising in stages, potentially securing higher incomes as you age.”
Mark Hicks, head of Active Savings, Hargreaves Lansdown:
“Savings rates are surging as inflation expectations and rate hikes are back on the table for 2026. The longer-term, more visible effects of the oil-price spike are likely to be reflected in forward looking inflation figures rather than this print specifically. In-line with the sell-off that we’ve seen in gilts since the Iran conflict began, swap rates are significantly higher than before, which dictates fixed-term pricing for banks. Longer-term fixed rates have been particularly volatile with some banks increasing rates by over 0.5%- and 5-year fixed rate deals now available above 4.5%. Given how volatile the market is, rates could go down as quickly as they’ve gone up, and with tax year-end approaching, it’s a great time to lock some money away in your ISA at these elevated fixed rates”
