Inflation fell more than expected last month to its lowest level in two and a half years, official figures show, in a boost for Rishi Sunak before a general election expected in the autumn.

The consumer prices index (CPI) fell to 3.4pc in February, down from 4pc the previous month, according to the Office for National Statistics (ONS).

The decline in price rises was sharper than analysts’ predictions of a fall to 3.5pc and is the lowest reading since September 2021.

ONS chief economist Grant Fitzner said: “Food prices were the main driver of the fall, with prices almost unchanged this year compared to a large rise last year, while restaurant and cafe prices also slowed.”

The decline in inflation boosts hopes that the Bank of England will cut interest rates in the summer, boosting household incomes ahead of an election.

Policymakers are widely expected to keep interest rates on hold when they announce their next interest rate decision on Thursday.

Read the latest updates below.