Breaking – UK inflation falls to 3.4% – the lowest for almost two and a half years

The UK inflation rate has fallen to 3.4% in the year to February. It marks the lowest level in almost two and a half years. 

The slower pace of food prices helped push down inflation, along with soft drinks, restaurants and hotels, the Office for National Statistics (ONS) 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.

Jeremy Hunt says the “plan is working” but Labour’s Rachel Reeves has called for a general 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 Bank of England’s target inflation rate is 2%, they are using the latest figures to weigh up whether to raise or lower interest rates.