The rate of U.K. Inflation has fallen to 3.4% in the year to February its lowest level in about two and a half years
The figure is showing a bigger-than-expected fall with Food prices among the biggest drivers of the inflation rate fall,
“Food prices were the main driver of the fall, with prices almost unchanged this year compared with a large rise last year, while restaurant and café price rises also slowed,” the Office for National Statistics said.
Other big downwards drivers included the hospitality industry and goods and services.
At the other end of the scale: “The largest upward contributions came from housing and household services, and motor fuels,” the ONS said.
However, “falls were only partially offset by price rises at the pump and a further increase in rental costs.”
The Chancellor Jeremy Hunt said ‘families will heave a sigh of relief’ that price rises are on course to hit the Government target of 2%
