Inflation falls back to 3%

Inflation fell back to 3% in February after a sharp spike at the beginning of the year.

The latest figures from the Office for National Statistics show the Consumer Prices Index (CPI) fell by 0.5% compared with January. However, the Retail Prices Index (RPI) remained stable, with prices up 3.7% over the past 12 months. Recreational and cultural goods were the main reason for the fall in CPI, with many prices unchanged after a sharp rise a year ago, while the cost of computer games and pre-school toys fell sharply. A fall in average household gas bills, following price reductions by a number of major suppliers, was also a major contributory factor. Clothing and foot...