Jeremy Hunt claims ‘plan is working’ with inflation forecast for 2% within months

Jeremy Hunt has said his “plan is working” as UK inflation unexpectedly fell to a new two and half year low in a surprise boost for the Government.

Figures from the Office for National Statistics are revealed a fall to 3.4 per cent for February, lower than the 3.5 per cent predicted. The announcement comes a day ahead of the Bank of England’s latest decision on Thursday on rates, which is expected to be kept at 5.25 per cent.

Shadow chancellor Rachel Reeves said that despite the fall in the rate of inflation, “prices are still high” and “working people are worse off”.

Follow i‘s live blog for updates.