LONDON — British inflation, Prime Minister Margaret Thatcher's public enemy No. 1, edged down in February to an annual rate of 7.5% but the trend was likely to be short-lived, government figures showed today.
The retail price index, Britain's main measure of inflation, fell from 7.7% in January.
But the underlying rate, which excludes home loan repayments, rose to its highest level in seven years.
"The position will worsen noticeably before it improves," Chancellor of the Exchequer John Major said earlier this week in a budget speech.