UK inflation marginally eased in March yet clothing prices rise

Headline inflation in the UK marginally fell in March, however, prices rose in clothing and footwear, reversing trends seen earlier in the year. Prices for the category increased 1.1 percent in the 12 months to March 2025, the Office for National Statistics (ONS) reported, compared with a drop of 0.6 percent in the 12 months to February.

ONS noted that prices typically rose in March as spring fashion continues to enter the shops. A further increase attributed to what the platform said was an “unusual fall in prices into February”.

“The price movements between January and March this year reflected changes in the proportion of discounted prices in the datasets,” ONS stated. “This proportion rose between January and February 2025, whereas it has historically fallen between these months. The proportion then fell by more than is usual into March 2025.”

Overall, the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.4 percent in the 12 months to March 2025, down from 3.7 percent in the 12 months to February. This is still above the Bank of England target of 2 percent.

On a monthly basis, CPIH rose by 0.3 percent in March 2025, compared to a rise of 0.6 percent in March 2024.