Inflation is still falling

INFLATION in the UK continued to fall in February, thanks largely to lower gas and electricity bills.

Consumer Prices Index (CPI) inflation fell to 3.4% in February, down from 3.6% in January, according to the Office for National Statistics (ONS).

Retail Prices Index inflation - including mortgage interest payments - fell to 3.7% from 3.9%.

Inflation has now fallen steadily since September and the CPI rate is at its lowest since November 2010.

The Bank of England’s target for inflation - the rate at which prices are rising - is 2% CPI.