UK inflation falls to 3.4% in February

CPI annual inflation fell to 3.4% in February, down from 3.6% in January, according to the Office for National Statistics.

The largest downward pressures came from domestic electricity and gas, recreation and culture, and transport. The pressures were partly offset by sales of alcohol and vegetables. Retail Prices Index (RPI) inflation - including mortgage interest payments - fell to 3.7% from 3.9%. Inflation has been falling steadily since September and the CPI rate is now at its lowest since November 2010. Jeremy Cook, chief economist at World First, warned despite the downwards trend, key risks remain. "Inflation is the major risk to the recovery at the moment. News the sticky inflation of the la...