Why has inflation fallen and what does it mean for households?
Inflation fell to 2.8% last month, but economists have warned price rises could accelerate next month.
UK inflation fell by more than expected last month, with the price of clothes and shoes declining for the first time in more than three years.
Consumer Prices Index (CPI) inflation was 2.8% in February, down from 3% in January, the Office for National Statistics (ONS) said.
But economists have warned that it could reflect a temporary dip before prices are set to rise sharply from April.
Here the PA news agency looks at what the latest inflation data means for households and the economy.
– What is inflation?
Inflation is the term used to describe the rising price of goods and services.
The inflation rate refers to how quickly prices are going up.
February’s inflation rate of 2.8% means that if an item cost £100 a year ago, the same thing would now cost £102.80.
It is below the 3% inflation rate recorded in January, meaning that prices are still increasing, but at a slower rate than they previously were.
– What made inflation go down?
The ONS said the biggest driver of lower inflation last month was a drop in the overall prices of clothes and shoes, which have not fallen for more than three years.
In particular, women’s clothes saw one of the largest movements in inflation, while prices fell faster for children’s clothing in February.
