Inflation dips to four-year low of 1.7%

THE headline rate of inflation fell again last month to 1.7%, from 1.9% in January.

The Office for National Statistics (ONS) said the largest contribution came from the falling cost of transport fuel, with the lower price of clothing and household services also having an impact.

Upward pressure came from the rising cost of furniture, recreation and culture.

The Consumer Prices Index (CPI) rate fell below the Government’s 2% target for the first time since November 2009 in January.

The ONS said the Retail Prices Index (RPI) figure – which includes housing costs – also fell, down from 2.8% to 2.7%.