Inflation drops to 1.7%
25/03/2014
The UK’s inflation rate fell to 1.7% in February, down from 1.9% the previous month.
The rate of inflation in the UK, which is measured by the Consumer Prices Index (CPI), fell below the Banks of England’s 2% target for the second consecutive month
One of the major factors which caused the drop in inflation was the price of petrol and diesel. According the Office for National Statistics (ONS), petrol and diesel prices both fell by 0.8p per litre between January and February.
In contrast, during the same period last year, the price of petrol increased by 4p per litre and diesel by 3.7p per litre.
Additionally, other factors such as the price of clothing and footwear also attributed to the drop in inflation as they increased at a slower rate than last year.
According to the ONS, one of the only household items measured by CPI that had increased at a higher rate than last year was the price of furniture and home furnishings.
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