News that the annual rate of consumer price inflation had fallen to 7.7 per cent went largely unheeded by the market, as the figures had been leaked.

The rate of consumer price inflation continued to drop to 4.6 per cent, from 4.9 per cent, while factory-gate inflation also moderated from 10.1 per cent in August to 9.1 per cent.

Core consumer price inflation, which excludes the volatile categories of food and fuel, has accelerated, to 2.6% at an annual rate in the three months to February.