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UK inflation fell to 2.7% in February

UK inflation fell to 2.7% in February

UK inflation fell to 2.7% in February, as measured by Consumer Prices Index, down from 3% in January,taking some pressure off hard-pressed households.

It suggests that the squeeze in earnings is coming to an end, as wages rose by 2.8% per year in December (although by 2.5% in the October-December quarter).

Real wages in the UK have been falling since last spring, so the end of the cost of living squeeze can’t come soon enough.

New data from Barclaycard shows that 39% of people feel poorer than a year ago, due to rising inflation. Food and fuel prices are a key factor.

Here’s some details:

*two-thirds (67 per cent) say it is because their weekly shop seems more expensive than it used to be

*41 per cent say filling up the car seems more expensive than it used to

*A fifth (21 per cent) say the cost of a night out or meal in a restaurant seems more expensive than it used to

*One in five (20 per cent) say that the cost of travelling on public transport has gone up.

Economist Sam Tombs predicts that today’s inflation data will cut the chances that the Bank of England raises interest rates this spring.

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