UK Inflation Hit Four Year Low in February

A fall in petrol prices pushed the UK inflation rate to a new four-year low of 1.7% last month, figures show.

It is the second consecutive month that the Consumer Prices Index rate has been below the Bank of England’s 2% target, having stood at 1.9% in January.

Inflation measured by the Retail Prices Index (RPI) fell to 2.7% in February from 2.8% the month before.

Average petrol prices fell by 0.8p a litre between January and February, compared with a rise of 4p a year ago.

The Office for National Statistics (ONS) also said diesel prices dropped by 0.8p a litre, compared with a 3.7p increase the year before.

The fall in the rate of inflation means that the gap between pay increases and the rise in prices is narrowing.

Average total earnings rose 1.4% in the three months to January, compared with a year ago, according to the ONS’ latest figures.

Public sector workers saw a rise of just 0.9% in the same period, but private sector pay growth was 1.7%, meaning it has already caught up with the increase in prices.

via BBC

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