What the fall in inflation means for your money

Last month, the rate of inflation in the UK plummeted to the lowest it has been over the last two years. Official figures have shown that the drop is due to the relaxing of food prices for households seriously impacted by the cost-of-living crisis.

According to the Office For National Statistics (ONS), the Consumer Prices Index inflation fell to 3.4% in February, from 4% in January, which is the lowest it has been since September 2021.

As a result, the level of inflation is nearer to the 2% target set by the Bank of England, just before its interest rate decision takes place on Thursday.

Grant Fitzner, chief economist at prices were the main driver of the fall, with prices almost unchanged this year compared with a large rise last year, while restaurant and cafe price rises also slowed.”