Consumer Prices Index (CPI) inflation in the UK fell to 3.6% last month, according to the Office for National Statistics (ONS), while RPI inflation – including mortgage interest payments – fell to 3.9% from 4.8%.
The ONS said inflation fell sharply as the impact of last year’s VAT rise was no longer included in the figures. VAT rose from 17.5% to 20% in January 2011.