UK inflation falls to 3.4% in February to lowest level for two and a half years

Decline in consumer prices index from 4% in January will add to speculation over summer interest rate cuts

UK inflation fell to 3.4% in February – the lowest level for two and a half years – according to official figures that show the annual rate of price rises starting to ease again after remaining unchanged the previous month.

The decline in the consumer prices index (CPI) from 4% in January will give a boost to Rishi Sunak, who has pledged to reduce inflation, and add to speculation that the Bank of England will cut interest rates in the summer.