The Office for National Statistics said today that the inflation rate in UK declined to 3% in the month of February. The inflation rate fell more than the estimates of market analysts and also reported low compared to the figures of January. The inflation rate was reported of 3.5% in the month of January. This was the first decline in inflation rate since September last year.

The data released by the Office for National Statistics showed that the Consumer Price Index inflation rate was recorded of 3% in the month of February from 3.5% recorded in January. The February CPI inflation rate beat the expectations of economists who estimated the inflation rate to 3.1% in February.

However, the Retail Prices Index inflation was reported unchanged at 3.7% in February. The RPI inflation rate includes the housing costs and is usually used as the basis for many pay deals.

The data of Office for National Statistics also revealed that the Core inflation was reported down to 2.9% while it was reported of 3.1% in the month of January. The Core inflation doesn't include the prices of volatile items such as energy and food.

The analysts said that the main reason behind the decline in CPI inflation rate is the sharp decrease in the prices of games, toys and household services last in February.