In a surprising turn of economic indicators, the United Kingdom's Core Retail Price Index (RPI) rebounded to 0.6% in February 2025, after experiencing a slight contraction of -0.1% in January. This update was confirmed on March 26, 2025, showcasing a stark month-over-month improvement.
The Core RPI, which excludes volatile items such as food and energy, had previously recorded a negative slide in January, marking economist concerns over a potential deflationary trend. The shift to positive territory in February now sparks a more optimistic outlook on consumer prices and underlying inflation pressures within the UK economy.
Economists and policymakers are likely to interpret this turnaround as a sign of resilience in consumer spending and price stability. With February's figures acting as a counterbalance to January's decline, the Core RPI movement stands as an encouraging piece of data amid a landscape of fluctuating economic activity.
