Inflation drops back to 2.8%

INFLATION dipped by 0.1% last month to 2.8%, according to official figures.

The Office for National Statistics said the largest contributions to the fall in the rate came from air fares and price movements in recreation and culture.

The clothing and footwear sectors also contributed to the headline Consumer Prices Index (CPI) rate but a rise in petrol and diesel prices partially offset the fall.

The Retail Prices Index (RPI) came down from 3.3% to 3.1%. This measure, which also includes housing costs, is used to set January’s rail fares at a rate of RPI plus 1%.