UK inflation falls to 3.4% - lowest level for 2 years

We’ll be closing this page soon, so here’s a quick summary of what we’ve learned this morning:

UK inflation fell to 3.4% for the year to February – the lowest level in almost two and a half years
But that doesn’t mean the cost of living is falling, it means that prices are rising less quickly than they were before
The drop in inflation was helped by a decrease in food price inflation, along with soft drinks, restaurants and hotels, according to the Office for National Statistics
But this has been partially offset by an uptick in petrol and diesel prices
A number of economists have predicted that inflation is likely to hit the Bank of England’s (BoE) target of 2% this summer
Chancellor Jeremy Hunt says this shows “the plan is working”, and it now “opens the door” for the BoE to consider bringing down interest rates
But Labour’s Rachel Reeves says “prices are still high” and the country “cannot afford another five years” of a Conservative government

UK inflation falls to 3.4% in the year to February – the lowest level in almost two and a half years
The slower pace of food price rises helped push down inflation, along with soft drinks, restaurants and hotels, the Office for National Statistics said
This effect was partially offset by petrol prices and rental costs
Overall, the cost of living is not falling but prices are rising less quickly than they were previously
Chancellor Jeremy Hunt says the “plan is working” but Labour’s Rachel Reeves calls for an election, saying “Britain cannot afford another five years” of a Conservative government
Inflation was running at 4% in the year to January, the same as December’s rate
Inflation peaked at 11.1% in October 2022 – the government pledged to halve the rate in 2023
The Bank of England, which has a target rate of inflation of 2%, uses the latest figure when weighing up whether to raise or lower interest rates.
Original Post from bbc.com