Inflation lowest in seven months

PRICES are rising at the slowest rate for seven months as the squeeze on family finances comes to an end.

In a boost to living standards, the Office for National Statistics said inflation fell from 3 per cent in January to 2.7 per cent last month. The steeper-than- expected fall left inflation at its lowest since July.

It set the scene for wages to start rising faster than prices once again. Analyst Stephen Clarke of the Resolution Foundation said: ‘We could be seeing an earlier end to the pay squeeze than previously expected, perhaps as early as this month.’

The consumer price index measure of inflation had been at 3 per cent or higher for five months in a row as the slide in the pound since the Brexit vote pushed up the cost of imported goods. But with the impact of sterling’s fall now waning, inflation was dragged down by cheaper petrol and lowerthan-expected rises in food prices.