CPI inflation, the main measure of inflation, dropped sharply in February to 3.4% from 4% in January, ONS said today.

The Consumer Prices Index 12 month rate held steady in January at 4% despite predictions from some of a rise to 4.1% or 4.2%.

The 12 month rate of CPI inflation increased by a surprise 0.1% in December to 4% despite experts predicting a fall to 3.8%.

The CPI inflation rate dropped from 4.6% in October to 3.9% in November, continuing a rapid decline seen in recent months.