CPI falls despite fuel price surge

23 March 2010

The rate of inflation fell to 3% during February, the Office For National Statistics has said.

The Consumer Price Index had hit a 14-month high of 3.5% in January but the next month saw prices for goods like petrol and household items increase less than in the same month last year, while British Gas reduced its prices.

Overall, prices in general increased at a slower rate over January and February compared with the same period last year when the index rate increased by a monthly average of 0.9%.

The cost of petrol has continued to rise however - prices increased by a record 3.2p a litre to 89.5p one year ago but this year the increase was just 0.9p. Prices of food and drink also increased at a lower rate than the same period of 2009. The cost of women's clothing rose by more than it did a year ago.

The index reduction has been marginally bigger than the City's forecast rate of 3.1%.

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