UK Inflation falls to 15-month low of 3.4pc

The consumer prices index (CPI) is down from 3.6pc in January as a drop in prices for housing, lower electricity and gas bills electricity, and cheaper air fare pushed overall inflation down, the Office for National Statistics said. However, the fall was not as much as expected - economist had forecast a drop to 3.3pc - as a record January to February rise in alcohol prices, driven by spirits, held back further declines. The drop comes as some economists warn that the overall rate of inflation may not pull back as quickly as previously thought amid resurgent oil prices, although the ONS said there was no evidence of this in February. Inflation has fallen steadily since hits a three-year peak of 5.2pc in September.