UK’s consumer inflation remained steady in February 2026, with the consumer prices index (CPI) rising 3 per cent year-on-year (YoY), unchanged from January, according to the Office for National Statistics (ONS). On a monthly basis, CPI increased by 0.4 per cent, matching the rate recorded in February 2025, signalling stable but persistent price pressures.

Clothing emerged as the primary driver of inflation, contributing the largest upward impact on both CPI and CPIH annual rates. In contrast, motor fuels provided the biggest downward pressure, partially offsetting overall price gains, ONS said in a press release.

Core inflation (excluding energy, food, alcohol and tobacco) edged up to 3.2 per cent in February from 3.1 per cent in January, indicating underlying price pressures remain firm. Within this, goods inflation stayed unchanged at 1.6 per cent, while services inflation eased slightly to 4.3 per cent from 4.4 per cent.

UK inflation held steady in February 2026, with CPI at 3 per cent YoY and a 0.4 per cent monthly rise, according to ONS.
Clothing drove inflation, while motor fuels offset gains.
Core inflation edged up to 3.2 per cent. Producer input prices rose 0.5 per cent, while output slowed to 1.7 per cent.
Import prices increased 0.3 per cent, indicating moderate external cost pressures.

Category-level data showed a notable rebound in clothing and footwear prices, which rose 0.9 per cent annually in February compared to no change in January. On a monthly basis, the segment recorded a 0.6 per cent increase, reversing a decline seen a year earlier.

Meanwhile, the producer input prices rose 0.5 per cent YoY, recovering from a revised 0.4 per cent decline in January, while output prices increased 1.7 per cent, though at a slower pace than the 2.5 per cent rise in the previous month. Monthly trends showed input costs climbing 0.8 per cent, even as factory gate prices fell by 0.5 per cent.

The Import Price Index (IPI) registered a modest 0.3 per cent annual increase, reflecting relatively contained imported inflation. Overall, the data suggests that while headline inflation remains stable, sector-specific pressures, particularly in clothing, continue to influence price dynamics across the UK economy.

Fibre2Fashion News Desk (SG)

China’s Ministry of Commerce has launched two trade barrier investigations against the United States (US) in response to recent Section 301 probes initiated by Washington, escalating trade tensions between the two economies. The investigations will examine US measures that allegedly disrupt global industrial and supply chains, as well as those that hinder trade in green products.

The move follows two separate Section 301 investigations by the Office of the US Trade Representative on March 12 and 13, targeting multiple economies, including China, over concerns such as “overcapacity” and alleged lapses in preventing imports linked to forced labour. Beijing expressed strong dissatisfaction and firm opposition to these actions.

China has launched two trade barrier investigations into the United States (US) measures following recent Section 301 probes by Washington.
The move targets actions affecting global supply chains and green trade.
Beijing opposed the US investigations and said it would take steps based on findings, signalling rising trade tensions between the two economies.

A ministry spokesperson said the probes were initiated in accordance with China’s Foreign Trade Law and related rules, adding that appropriate measures would be taken based on the findings.

Commerce Minister Wang Wentao also raised concerns over the US actions during a meeting with US Trade Representative Jamieson Greer on the sidelines of the 14th WTO Ministerial Conference in Yaoundé, Cameroon.

Fibre2Fashion News Desk (CG)

The European Parliament and European Council yesterday reached an agreement on a major reform of the European Union (EU) Customs Code to address problems relating to e-commerce, safety of goods and efficiency.

According to the informal agreement, there will be a new handling fee for each item entering the EU from non-EU countries and sent directly to EU consumers, to cover the extra cost of handling an ever-increasing number of individual parcels.

This will be paid by the same entity responsible for paying other customs charges for the same parcel, to avoid shifting the cost to consumers.

The European Parliament and European Council have reached a deal on a major reform of the EU Customs Code to address problems relating to e-commerce, safety of goods and efficiency.
A new handling fee will be charged for each item entering the EU from non-EU nations and sent directly to EU consumers.
The European Commission will establish the level of the fee and reassess it every two years.

The European Commission will establish the level of the fee and reassess it every two years. Member states will start collecting it as soon as the necessary information technology (IT) system becomes operational, and in any case no later than November 1, this year.

Under the new rules, sellers and platforms that facilitate distance sales of goods from non-EU countries directly to EU customers will be treated as importers. This will oblige them to provide customs authorities with all the necessary data, pay or guarantee any charges, and make sure that the goods comply with EU laws, an official release said.

These companies must be established in the EU or be represented by an EU-based entity having either authorised economic operator (AEO) or trusted trader status. This should prevent the use of shell companies.

To incentivise bulk shipments that are easier for customs authorities to check, non-EU country sellers and platforms are encouraged to operate warehouses in the EU. Their intra-EU client shipments would benefit from a lower handling fee, provided their goods were imported in collective packaging and large enough quantities to make customs checks more efficient.

Companies that repeatedly ignore EU rules could be punished with a fine of at least 1 per cent (and up to 6 per cent) of the total value of goods imported into the EU in the previous 12 months.

Additionally, customs authorities may suspend, revoke, or annul their trusted trader or AEO status and flag them as high-risk operators.

Import-export companies that follow the rules and agree to cooperate transparently with the customs authorities may benefit from a simplified ‘trust and check’ regime. This would initially require them to go through thorough vetting and grant customs authorities access to their electronic systems.

In exchange, their shipments would be checked less frequently and they would have more flexibility regarding the payment of duties and fees.

The current AEO qualification will remain in place to keep customs status accessible to smaller economic operators.

The reform also establishes a new customs data hub to be managed by the new EU Customs Authority (EUCA). It will be available for optional use by 2031 and mandatory by 2034.

The data hub will replace at least 111 software systems currently used by customs.

The provisional agreement needs to be officially approved by Parliament in plenary as well as by the EU Council, before it will become law.

Fibre2Fashion News Desk (DS)