On a monthly basis CPI saw a 0.4% rise in February 2024, a fall from the 0.6% seen in February 2024.

Meanwhile CPIH rose by 3.7% in the 12 months leading to February, down from 3.9% in january, while on a monthly basis February saw a 0.4% rise compared with the 0.6% from the same time last year.

According to the ONS, the largest downward contributor to monthly change in CPI and CPIH annual rates came from clothing, with a further downward effect in CPIH from housing and household services.

The latest results come just before Rachel Reeves is set to deliver the Spring Statement today.

Industry professionals have given their insight on the latest inflation drop

Martyn Smith, managing director at Black & White Bridging:

"With inflation dropping to 2.8%, down from 3% last month — lenders and borrowers finally have some breathing space.

“Lower inflation levels are key to rebuilding confidence in the housing market, and if this trend continues, we should see more competitive borrowing options emerge.

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“Bridging and development finance will be crucial in unlocking stalled projects and boosting supply, but policy support is needed to keep momentum going.

“If today’s Spring Statement doesn’t address planning bottlenecks and investment incentives, we risk missing a prime opportunity to get Britain building again."

Paul Noble, CEO at Chetwood Bank: 

"Today’s inflation data will feel like a balm to those stung by recent results. While economic uncertainty persists, fuelled in no small part by current events, today’s result offers hope that inflationary pressures might be easing – if only for a moment.

 “After a first Budget that left a significant mark, the Chancellor now faces another pivotal moment.

“The new government’s balancing act remains delicate, but today’s figures provide some breathing room ahead of the Spring Statement later today. The BoE, too, will be watching closely as it weighs the timing of future rate cuts.

 “With the question of further interest rate cuts playing out over the coming months, consumers must act now to secure the best savings returns. Financial institutions have a key role to play in ensuring that savers can access competitive and meaningful options no matter what the central bank decides.”