In the United Kingdom, the increase in prices was less than expected in February, according to official data released on Wednesday. This is positive news for Treasury chief Rachel Reeves as she is set to address lawmakers about the country's financial situation.

The Office for National Statistics reported that consumer price inflation dropped to 2.8% from 3% in the previous month, surpassing analysts' predictions of a decrease to 2.9%. The decline was mainly influenced by lower prices of clothing, particularly women's clothing.

Although the cost of living is still increasing for UK households and inflation remains above the Bank of England's 2% target, the rate of increase is slower than in recent years. Despite the economy's sluggish growth and uncertainties surrounding U.S. tariff policies, the Bank of England opted to maintain the main interest rate at 4.50%.

The unexpected decrease in inflation could ease pressure on Reeves as she prepares to present her spring statement, which is expected to include spending cuts for certain government departments and address reduced economic growth forecasts.