The UK's February inflation rate remained at 3%, with no impact from the Iran war at that time.

MaticHoleFiller · 2026-04-07T18:35:02+00:00

Before the Iran war, the UK inflation rate remained at 3%, the lowest in 11 months. Although service sector inflation slightly declined, gasoline prices may impact household finances due to the war. The GBP to USD exchange rate fell to 1.3385 USD.

MaticHoleFiller

2026-04-07 18:35:02

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Before the war in Iran broke out, British inflation was at its lowest level in 11 months. However, the war caused a surge in gas prices, which could once again strain household finances.

On Wednesday, the UK’s Office for National Statistics said that the consumer price increase in February was held at 3%. This matched economists’ expectations.

Service sector inflation (a measure of domestic price pressures) edged down to 4.3%, the lowest level since March 2022.

“Rising clothing prices are the biggest factor pushing prices higher,” said Grant Fitzner, the chief economist at the Office for National Statistics. “But a drop in fuel prices offset that effect—fuel prices were collected before the Middle East conflict broke out, and before oil prices rose in the wake of that.”

The pound to US dollar exchange rate remained on the decline, down 0.2% to $1.3385.

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Reviewer: Li Zhaofu

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