Cheaper energy lowers UK inflation
Lower electricity and gas bills helped drag the overall rate of inflation in Britain to a 15-month low last month, official figures showed today.
The consumer prices index (CPI) rate of inflation dipped to 3.4%, compared to 3.6% in January, the Office for National Statistics (ONS) said, as E.ON and Scottish Power cut their tariffs.
Cheaper air fares and discounts on digital cameras also pulled the CPI rate lower, but a record January to February rise in alcohol prices, driven by spirits, held back further declines.
The drop comes as some economists warn that the overall rate of inflation may not pull back as quickly as previously thought amid resurgent oil prices, although the ONS said there was no evidence of this in February.
