Inflation dips to 2.7% as impact of Brexit vote starts to fade

Cost of living squeeze eases after a small fall in both petrol and food prices, says ONS

Inflation fell further than expected last month, as the impact of the Brexit vote on the price of petrol and food began to fade, easing the pressure on squeezed British households.

The consumer price index (CPI) fell to 2.7% in February, down from 3% in January, according to the Office for National Statistics. Economists had expected a CPI of 2.8%. The new reading puts the barometer for the cost of living in Britain at its lowest level since July last year.

Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.