UK inflation rate fell to 3.4 per cent in February.
The annual rate at which prices are rising slowed down to 0.6% last month, making it the lowest it’s been in two years, figures from the Office for National Statistics (ONS) show.
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This is down from the 4% hike in January and December.
But inflation rates remain above the Bank of England’s 2% target.
Chancellor of the Exchequer, Jeremy Hunt said: “The plan is working. Inflation has not just fallen decisively but is forecast to hit the 2% target within months.
“This sets the scene for better economic conditions which could allow further progress on our ambition to boost growth and make work pay by bringing down national insurance as we work towards abolishing the double tax on work – but only if we can do so without increasing borrowing or cutting funding for public services.”
It comes after the rate of inflation rose unexpectedly to 4% at the end of last year.
It was the first time it had increased since February 2023 and has come as a surprise to many economists.
Inflation is a measure of how the price of goods and services has changed over the past year.
High inflation means the cost of everyday essentials, like food and energy are rising, meaning your money doesn’t go as far.
