Inflation fall may not stem rate rise

Falling petrol prices helped inflation slow to a seven-month low point last month.

A smaller rise in food prices than a year ago also contributed to the consumer prices index easing to 2.7%, said the Office for National Statistics.

The rate was down from 3% in January and lower than economists predicted. But experts are split on whether the slowdown makes it less likely that the Bank of England will announce another rate rise in the coming months.

It doubled the base rate to 0.5% last November but the Bank’s target is to get inflation back to 2%.

Inflation was driven up by a slump in the pound after the 2016 Brexit vote, which made imports more expensive, but the impact of that has eased.

TUC General Secretary Frances O’Grady said: “Britain’s living standards crisis is far from over.

“Today’s fall in prices may ease the pressure but working people will still be worse off at the end of this Parliament than before the crash.”