UK inflation falls to 3.4%

Tuesday, 20th March, 2012

The UK consumer prices index has fallen to 3.4% in February, according to the Office for National Statistics. The consumer prices index is down 0.2% from 3.6% in January. The retail prices index fell to 3.7%, from 3.9% in January. Inflation has fallen markedly since its high in September 2011, but still remains well above the Bank of England’s 2% target. CPI reached a record high of 5.2% in September 2011 while RPI stood at 5.8% in September 2011, its highest point since June 1991. The largest downward pressures on CPI came from domestic electricity and gas, recreation & culture and transport. Offsetting these falls were rising pressures from alcohol off sales and vegetables. The largest downward pressures for RPI came from motoring costs and fuel & light. The ONS cited alcohol as the only upward pressure for RPI.