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FXstreet.com (Barcelona) - Clothing, footware, furniture and household goods are the main reason of the 0.6% CPI rise in February. In the yearly basis, inflation got to its lowest since November 2010, decreasing from 3.6% to 3.4%, still above the targeted 3%. Softened bills in domestic electricity and gas were the main factors of yearly CPI depreciation.

The UK labor market, with restrained wages, continues to drag the Core CPI down, now to its lowest since November 2009.

"We expect inflation to continue falling this year, as the influence of all temporary factors vanishes and downward pressure from unemployment and spare capacity persists", writes Caroline Newhouse, analyst at BNP Paribas, aware of the BoE target of 2% by the beginning of 2012 that can be compromised due to high oil prices.

"Next year, inflation is projected to rise slowly back towards the target, as the margin of economic slack gradually diminishes, and businesses continue to restore profit margins that were squeezed during and after the recession", adds Newhouse.

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