Inflation in the UK remained flat at 3% in the 12 months to February, unchanged from January, the Office for National Statistics (ONS) has revealed.

Month-on-month, consumer price index (CPI) inflation increased by 0.4%, which is the same rate as in February 2025.

The ONS reported that clothing made the largest upward contribution to the monthly change in CPI inflation, while motor fuels made the largest downward contribution.

Following the latest update, regional director at deVere Group, James Green, warned many households, businesses and investors could be "underestimating the scale of speed of what’s coming".

He stated: "Today’s UK inflation data reflects the period just before a renewed surge in global energy prices tied to escalating tensions involving Iran. Inflation is now, by almost all estimates, turning higher again.

"Energy prices are rising sharply, and that feeds directly into every part of the economy. Households, businesses and investors are all exposed."

Chief distribution officer at LSL Financial Services, Emma Hollingworth, added that a flat inflation reading will keep the Bank of England "firmly in cautious territory".

She concluded: "With ongoing geopolitical tensions still feeding through to energy and shipping costs, policymakers will want clearer evidence that domestic price pressures are easing before committing to the next rate cut.

"Despite the lack of movement today, the backdrop for mortgage pricing has changed materially. Swap rates have been rising, reflecting market concerns about the durability of inflation. That means fixed rate mortgages are unlikely to fall meaningfully in the short term, even as lenders continue to compete hard for business.

"For brokers, this reinforces the importance of early engagement. With a large cohort of borrowers approaching the end of their fixed terms in 2026, advisers have a timely opportunity to guide clients through a market shaped by global uncertainty and rising funding costs."

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