UK inflation falls sharply in February

1024AM GMT twenty-three March 2010

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The Consumer Prices Index eased to 3pc from a 14-month high of 3.5pc in January, the Office for National Statistics (ONS) said.

Prices for equipment such as motor fuel and domicile products saw not as big increases than twelve months earlier, whilst British Gas additionally cut gas prices, the ONS said.

Stamp avocation shift subdues housing marketplace Savers still struggling to mangle even Real acceleration falls to reduction 10pc Global convene stalls in London after shock acceleration climb Average residence prices behind next �150,000 Sterling rallies on the behind of acceleration total

The ONS combined that toys and games additionally dampened acceleration this year as prices were unvaried compared with a big enlarge in costs a year ago.

But factors such as the VAT cut and successive lapse to 17.5pc in Jan have introduced sensitivity in to the monthly figures, as well as the unfortunate measures undertaken by firms to tarry the misfortune of the retrogression last year.

Far less discounting by retailers this year than twelve months ago when majority shops were slicing prices to lure in consumers put ceiling vigour on the cost of vital in January, to one side the climb in VAT.

Howard Archer, economist at IHS Global Insight, pronounced "The reduce acceleration is, the improved for [government] spending plans."

However, he cautioned that it was additionally "probably a pointer that underlying direct stays flattering weak".

Meanwhile, prices opposite the house rose at a far reduce rate in between Jan and Feb than during the same duration last year, when CPI acceleration surged at a jot down monthly rate of 0.9pc.

Petrol prices rose by a jot down 3.2p per litre a year ago to mount at 89.5p, nonetheless this time turn normal prices rose by a far not as big 0.9p. Food and splash costs additionally rose by less than a year ago.

The usually vital ceiling stroke on acceleration this month came from women"s clothing, where prices rose by some-more than a year ago.

Today"s tumble in CPI is somewhat bigger than the dump to 3.1pc approaching by the City.

The Bank of England expects acceleration to go on to tumble to next the 2pc aim in the months ahead, as the mercantile tardy non-stop up by the retrogression drags down prices.