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| UK inflation rate falls to fresh four-year low of 1.7% | UK inflation rate falls to fresh four-year low of 1.7% |
| (35 minutes later) | |
| A fall in petrol prices pushed the UK inflation rate to a new four-year low of 1.7% last month, figures show. | |
| It is the second consecutive month that the Consumer Prices Index rate has been below the Bank of England's 2% target, having stood at 1.9% in January. | It is the second consecutive month that the Consumer Prices Index rate has been below the Bank of England's 2% target, having stood at 1.9% in January. |
| Inflation measured by the Retail Prices Index (RPI) fell to 2.7% from 2.8% the month before. | Inflation measured by the Retail Prices Index (RPI) fell to 2.7% from 2.8% the month before. |
| Average petrol prices fell by 0.8p per litre between January and February, compared with a rise of 4p a year ago. | Average petrol prices fell by 0.8p per litre between January and February, compared with a rise of 4p a year ago. |
| The Office for National Statistics (ONS) also said diesel prices dropped by 0.8p, compared with a 3.7p increase the year before. | The Office for National Statistics (ONS) also said diesel prices dropped by 0.8p, compared with a 3.7p increase the year before. |
| The ONS said the price of clothing and footwear had also increased at a slower pace than the same period last year, and energy bills also had a downward effect on inflation. | The ONS said the price of clothing and footwear had also increased at a slower pace than the same period last year, and energy bills also had a downward effect on inflation. |
| However, the price of furniture and home furnishings rose by more than last year, the ONS said. | However, the price of furniture and home furnishings rose by more than last year, the ONS said. |
| The fall in the rate of inflation means that the gap between pay increases and the rise in prices is narrowing. | |
| Average total earnings rose 1.4% in the three months to January, compared with a year ago, according to the ONS' latest figures. | |
| Public sector workers saw a rise of just 0.9% in the same period, but private sector pay growth was 1.7%, meaning it has already caught up with the increase in prices. | |
| Further falls? | |
| Prime Minister David Cameron tweeted that the figures support the government's economic strategy. | |
| "Our long term economic plan is helping provide stability and security for hard-working people," he wrote. | |
| Economists said the fall in the inflation rate was likely to underline the Bank of England's message that there is no rush to raise interest rates. | |
| Howard Archer, chief UK and European economist at IHS Global Insight, said rates were now likely to stay at 0.5% until early next year despite the improved growth in the economy. | |
| Samuel Tombs of Capital Economics said he expected inflation to fall even further. | |
| "A favourable combination of lower import prices, flat commodity prices and recovering productivity is likely to help CPI inflation fall further, perhaps to about 1% by the end of the year," he said. |