UK inflation fell by more than expected in February, driven by a drop in the price of clothes and shoes.
Inflation dropped to 2.8%, down from a rate of 3% in January, according to the Office for National Statistics (ONS).
The latest figures come ahead of Chancellor Rachel Reeves’ Spring Statement, where she will set out her economic plans.
Grant Fitzner, chief economist at the ONS, said women’s clothing “was the biggest driver for this month’s fall”.
“This was only partially offset by small increases, for example, from alcoholic drinks.”
Although inflation dipped last month, the rate is expected to increase in the months ahead with energy and water bills set to rise in April.
In addition, a recent survey from the ONS indicated that almost a half of businesses are considering price rises as they brace for next month’s tax rises and increase in the National Living Wage.