The Government today announced that CPI inflation had fallen to 2.7% from 3%.

Lower petrol, food and accommodation services prices were cited as the main reasons for the drop.

The Office of National Statistics (ONS) said that inflation could have gone down more but for rising costs of footwear.

The CPIH rate which includes owner occupiers’ housing costs also fell from 2.7% in January, to 2.5% in February.

ONS head of CPI Phil Gooding, said: “A small fall in petrol prices alongside food prices rising more slowly than last year helped pull down inflation, as many of the early 2017 price increases due to the previous depreciation of the pound have started to work through the system.

“Hotel prices also fell and the cost of ferry tickets rose more slowly than last year, when prices were collected on Valentine’s Day when many people could have been taking mini-breaks.

“There were some signs of slowing price rises in the cost of products leaving factories, with food and petroleum products prices falling.

“Inflation of raw materials is also slowing down following high annual inflation in 2017, with prices of crude oil lower than in January.
 
“House price growth remained steady, with prices increasing strongly across much of the country, although London and the north east are both lagging behind.”