CPI falls to 3.4% in February

CPI falls to 3.4% in FebruaryThe latest price inflation figures show that the Consumer Prices Index (CPI) fell to 3.4% for the year to February.

It fell from 3.6% in January, continuing the current downwards trend in the rate of inflation. Economists had forecast a fall to 3.3%.

Falls in the cost of utilities, including gas and electricity, made the largest contribution to these falls.

The Retail Prices Index (RPI) measure of price inflation, which includes the cost of mortgages, also fell to 3.7% in February, down from 3.9%.

The rate of inflation has fallen each month since September and the latest inflation rates announced today show CPI at its lowest level since November 2010.

CPI remains above the government target of 2% and price inflation in general continues to squeeze those who have not experienced wage increases in recent years.

Photo credit: Flickr/Night Owl City

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