Inflation drops to 3.4%

THE headline rate of inflation has fallen to a 15-month low.

New figures from the Office of National Statistics showed that CPI inflation was 3.4% in February, down from 3.6% in January.

The latest fall means that CPI inflation is now at its lowest level since November 2010.

Falling energy costs were among the biggest downward pressures while alcohol and vegetables saw some of the biggest rises.

The inflation figures are one of the last major pieces of economic data to be publised before the Budget tomorrow.

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