Labour warned despite the fall in inflation, millions of families and pensioners will still be worse off.
This fall in the inflation rate is welcome, but families and pensioners will face a real squeeze from big hikes in energy and food prices in the coming months. Instead of easing the squeeze, the Government is making things even harder for families on low and middle incomes. Millions of families and pensioners will be worse off because of the 3p rise in fuel duty and cuts to child benefit in January, and the granny tax which comes in on the same day that millionaires get a tax cut in April.
The fall in inflation should be good news, but rising energy prices combined with sluggish wage increases mean the impact may not be felt.
With energy bills about to rise again and food prices under pressure today's statistics could be the low point if inflation goes up again.