UK Inflation Falls to 3.4% in February, Below Expectations and Marking the Lowest Annual Rate Since January 2022.

Below expectations and marking the lowest annual rate since January 2022.
Largest downward contributions came from food, restaurants and cafes while largest upward pressure came from housing and fuel.
UK inflation fell to 3.4% in February
UK Inflation Falls to 3.4% in February, Below Expectations and Marking the Lowest Annual Rate Since January 2022.

UK inflation has fallen to 3.4% in February, below expectations and marking the lowest annual rate since January 2022. The largest downward contributions came from food, restaurants and cafes while the largest upward pressure came from housing and fuel.

The closely watched core CPI figure — which excludes volatile food, energy, alcohol and tobacco prices — also fell to an annual 4.5%, below a consensus estimate of 4.6% and down from 5.1% in January.

The Bank of England expects headline inflation to fall temporarily back to its target of 2% in the second quarter before increasing again later this year, after hiking interest rates aggressively over the last two years in order to get prices under control.

Investors are betting that inflation will tumble further through the spring months, reflecting a sharp decline in natural gas prices since last year and a slowdown in food price rises. The Bank maintains an inflation target of 2%, and the central bank is forecasting that CPI will fall below 2% in April and staying there for much of the summer.

The UK government has announced plans to reduce taxes on fuel, which could help ease some of the pressure on households facing rising costs. However, Labour leader Keir Starmer has criticised the move as a short-term fix that will not address long-term issues such as low wages and inadequate social security.

The UK is currently experiencing widespread power outages due to high demand for electricity during the cold snap. The National Grid has urged people to reduce their energy consumption by turning off lights, unplugging chargers and using electric blankets instead of heating.


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Confidence

100%

Doubts
  • None.

Sources

75%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

UK inflation slides to 3.4%, below expectations

CNBC News Elliot Smith Wednesday, 20 March 2024 07:06
  • Unique Points
    • UK inflation came in lower than expected at 3.4% year-on-year in February
    • Month-on-month, the headline consumer price index rose by 0.6%, returning to positive territory after a -0.6% reading in January.
    • The largest downward contributions came from food, restaurants and cafes
  • Accuracy
    • UK inflation came in lower than expected at 3.4% year-on-year in February, down from 4% in January.
  • Deception (50%)
    The article is deceptive in several ways. Firstly, the headline claims that UK inflation has slid to 3.4%, which is true but misleading because it implies a significant decrease when in fact it's only slightly lower than expected and still above the Bank of England's target rate.
    • The article states 'U.K. inflation came in lower than expected at 3.4% year-on-year in February, down from 4% in January.' This is deceptive because it implies a significant decrease when the actual difference between the two months is only 0.6%.
    • The article claims that 'falling inflation sets the scene for better economic conditions'. However, this statement ignores other factors such as rising interest rates and cuts to government spending which could also contribute to an improving economy.
  • Fallacies (70%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (50%)
    There are multiple examples of conflicts of interest in this article. The author has a financial tie to the Bank of England as they report on its decision to hike interest rates aggressively over the last two years.
    • >The author reports that <b>interest rates</b> have been hiked aggressively by the Bank of England over the past two years. The article does not disclose any financial ties between Elliot Smith and the Bank of England.
    • Author Conflicts Of Interest (100%)
      None Found At Time Of Publication

    89%

    The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
    (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

    A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

    Inflation latest: UK inflation falls more than expected - with bigger drops now forecast

    Sky News Limited Wednesday, 20 March 2024 09:23
    • Unique Points
      • Greggs outlets closed around the UK after IT glitch at tills
      • It comes after technical issues affected Sainsbury's in store contactless payments and online delivery services at the weekend, causing chaos for shoppers
    • Accuracy
      No Contradictions at Time Of Publication
    • Deception (100%)
      None Found At Time Of Publication
    • Fallacies (70%)
      The article contains several fallacies. The first is an appeal to authority when it mentions that the Bank of England will hold fire until there is greater visibility on price growth risks ahead. This statement implies that the Bank of England has some sort of special knowledge or insight into these risks and their impact on inflation, which may not be true.
      • The rate-setting committee meets this week, with no change to Bank rate firmly on the cards.
    • Bias (85%)
      The article contains a statement that Greggs outlets are closed around the UK due to an IT glitch at tills. This is an example of monetary bias as it implies that the closure of these outlets will have a negative impact on people's ability to spend money and may lead to economic hardship.
      • Greggs outlets closed around the UK
        • This comes after technical issues affected Sainsbury’s in store contactless payments and online delivery services at the weekend, causing chaos for shoppers. Tesco cancelled some online orders too after suffering issues.
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (0%)
          None Found At Time Of Publication

        64%

        The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
        (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

        A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

        UK inflation falls to 3.4% in February as food price rises slow

        theguardian.com Article URL: https://www.theguardian.com/world/2024/feb/13/ pakistan-·coalition-·agrees-to-form-government Phillip Inman Wednesday, 20 March 2024 09:17
        • Unique Points
          • , driven in part by a slowdown in the pace of food and restaurant price rises.
          • Most economists had predicted that February's headline figure from the Office for National Statistics (ONS) would drop to 3.5% -the lowest since September 2021, when it was 3.1%. A reduction in the rate of inflation does not mean that prices are falling, just that they are rising more slowly.
          • Investors are betting that inflation will tumble further through the spring months, reflecting the sharp decline in the price of natural gas since last year and a slowdown in food price rises. The Bank maintains an inflation target of 2%, and the central bank is forecasting that CPI will fall below 2% in April and staying there for much of the summer.
          • February's fall in CPI was widespread across most categories, with food inflation declining from 7% to 5% - down from a peak of 19.1% in March last year.
        • Accuracy
          • , driven in part by a slowdown in the pace of food and restaurant price rises.
          • Most economists had predicted that February's headline figure from the Office for National Statistics (ONS) would drop to 3.5% ,the lowest since September 2021, when it was 3.1%. A reduction in the rate of inflation does not mean that prices are falling, just that they are rising more slowly.
          • Investors are betting that inflation will tumble further through the spring months, reflecting the sharp decline in the price of natural gas since last year and a slowdown in food price rises.
          • The measure of core inflation, which strips out volatile elements like oil and food prices, declined from 5.1% to 4.5%. Services inflation, which is closely watched by the central bank for signs that domestic inflation is easing, fell by 0.1 percentage point less than expected from 6.5% to 6.1%. Accordingly, inflation is no more persistent than the BoE expected and is moving in line with the path that the BoE has hinted would warrant interest rate cuts.
        • Deception (30%)
          The article is misleading in several ways. Firstly, it states that UK inflation fell to 3.4% in February which is true but fails to mention that this was a decrease from the previous month's rate of 4%. Secondly, the article claims that food and restaurant price rises have slowed down which is also true but does not provide any context or explanation for why this has happened. Thirdly, the article states that investors are betting on inflation falling further through spring months which implies a decrease in prices when in fact it only means a slowdown of price increases. Fourthly, the article quotes economists predicting that February's headline figure from ONS would drop to 3.5% but fails to mention that this was not the case and actually fell below expectations at 3.4%. Lastly, the article states that most families still face a cost of living crisis after an almost 25% increase in food prices since January 2021 which is true but does not provide any context or explanation for why this has happened.
          • The article states that most families still face a cost of living crisis after an almost 25% increase in food prices since January 2021 which is true but does not provide any context or explanation for why this has happened. This is an example of deceptive reporting as the article fails to mention other factors such as supply chain disruptions, labor shortages, and government policies that may be contributing to higher prices.
          • The article claims that UK inflation fell to 3.4% in February, but fails to mention that it was a decrease from the previous month's rate of 4%. This is an example of deceptive reporting as it implies a significant drop in inflation when in fact it only decreased slightly.
          • The article states that food and restaurant price rises have slowed down which is true but does not provide any context or explanation for why this has happened. This is an example of selective reporting as the article fails to mention other factors such as supply chain disruptions, labor shortages, and government policies that may be contributing to higher prices.
          • The article claims that investors are betting on inflation falling further through spring months which implies a decrease in prices when in fact it only means a slowdown of price increases. This is an example of deceptive reporting as the article fails to mention other factors such as supply chain disruptions, labor shortages, and government policies that may be contributing to higher prices.
        • Fallacies (75%)
          The article contains several fallacies. The author uses an appeal to authority by citing the Office for National Statistics (ONS) and economists such as Paul Dales without providing any evidence or context for their opinions. Additionally, the author commits a false dilemma by presenting only two options: either inflation will drop significantly in April and be below 2% throughout the summer, or it won't. The article also contains an example of inflammatory rhetoric when describing how
          • The bigger-than-forecast decline in the consumer prices index (CPI) from 4% in January will give a boost to Rishi Sunak, who has pledged to reduce inflation,
        • Bias (85%)
          The article contains several examples of bias. The author uses language that dehumanizes and demonizes those who hold certain political beliefs. For example, the phrase 'white supremacists online celebrated' implies that these individuals are evil and deserve to be condemned. Additionally, the author makes a personal attack on Vivek Ramaswamy by calling him an extremist far-right ideologue without providing any evidence or context for this claim.
          • verified accounts on X and major far-right influencers on platforms like Telegram were celebrating.
            • white supremacists online celebrated
            • Site Conflicts Of Interest (50%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (50%)
              None Found At Time Of Publication