UK consumer price inflation falls in February

The consumer price inflation (CPI) rate fell from 2.7% in January to 2.5% in February 2018, according to the Office of National Statistics.

The largest contributions to the fall were attributed to transport and food prices, which rose by less than the previous year.

Rising prices for footwear produced the largest, partially offsetting, upward contribution to the inflation rate.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month rate was 2.5% in February 2018, down from 2.7% in January 2018.

Restaurants and hotels also had a large downward effect on the change in the rate, with prices of overnight hotel accommodation falling this year but rising a year ago.

There was a large downward contribution from food and non-alcoholic beverages, where prices rose by 0.1% between January and February this year compared with a rise of 0.8% a year ago.