Britain's inflation rate unexpectedly fell even further below its 2 per cent target last month as clothing prices failed to recover after the new year sales, official figures showed today.
Britain's consumer price index rose by just 1.3 per cent on a year earlier, down from 1.4 per cent in January. Analysts had predicted inflation would remain steady.
Despite the surprise fall in prices, most analysts still expect the Bank of England to raise interest rates again in the next couple of months to rein in roaring consumer spending and house prices.
The Bank of England raised interest rates last month for the second time since November, taking them up a quarter-point to 4 per cent.
Falling clothing and footwear prices were the main factors for the slowdown in inflation in February as retailers continued special offers, particularly on women's clothing, while menswear prices didn't rise as much as normal.