UK Inflation Falls In A Boost To Rachel Reeves Ahead Of The Spring Statement

UK inflation has dropped by more than expected in a last-minute boost for chancellor Rachel Reeves before she announces her Spring Statement this afternoon.

The Office for National Statistics confirmed the it had fallen from its January rate of 3% 2.8%. Economists had predicted it would be 2.9%.

According to the ONS, the fall was due to a drop in the price of women’s clothes which was only partially offset by other prices such as small increases in alcoholic drinks.

The Bank of England’s target is for an inflation rate of 2%.

Lib Dem Treasury spokeswoman Daisy Cooper said: “This news will be of no comfort to the millions of families across the country who are struggling with the worst cost of living crisis in a generation, as energy and food prices continue to rise and mortgage bills remain sky high. 

“Today, the chancellor has an opportunity to deliver real action to finally get the economy back on track. It is time for the government to fix the mess they made in the autumn Budget and deliver a real plan for growth to finally get our economy growing.”

The fall in inflation is welcome news for Reeves as she prepares to announce public spending cuts of around £15 billion in the Spring Statement.

They will include an extra £500 million of welfare cuts after the Office for Budget Responsibility said reforms to benefits announced just last week will not deliver the £5bn in savings the government hoped.

However, the chancellor will announce a £2.2 billion increase in defence spending on new hi-tech weapons and better homes for military families.