UK inflation beats expectations as it drops to 3.4%

After stalling at 4%

The Consumer Prices Index (CPI) dropped to 3.4% in February, after stalling at 4% for two months, according to the Office for National Statistics.

The figures published today (20 March) beat expectations, which had forecast a reading of 3.5% for the month. Economists flag potential historic divergence between BoE and OBR growth forecasts The fall in inflation was a result of prices rising by 0.6% in February, the ONS said, compared with a 1.1% increase a year prior. Between January and February, prices rose by 0.2%, a significant drop from 2.1% a year ago. Food, restaurants and cafes made the biggest detractions to CPI, while housing and housing services and motor fuels made the biggest upward contributions to the figure. ...