The decrease in inflation has been welcomed by business leaders in Wales.

Latest statistics showed that in February inflation dropped from 4 per cent to 3.4 per cent.

It was driven by reductions in food, non-alcoholic drinks, cafes, and restaurant prices, according to BBC, in addition to relaxations in alcohol, tobacco, clothing, and footwear expenses.

Inflation, the measure of price rise over time, has been on a steady decline since its 40-year peak of 11.1 per cent in October 2022.

Paul Butterworth, CEO at Chambers Wales South East, South West and Mid, stated: "Today’s good news that inflation has fallen to 3.4 per cent will come as a relief to businesses and consumers alike.

"Over half of businesses in Wales had cited inflation as a key concern in our Quarterly Economic Survey in Q4 of 2023."

However, it is important to note that prices are not reducing, they are just escalating at a slower rate than before.

Mr Butterworth added: "This is a step in the right direction with regards to meeting the government’s 2 per cent target.

"However, prolonged high inflation rates over the last two years have meant that prices have stabilised at a higher level."

Moreover, he emphasised the importance of continued improvements in this trend to positively affect interest rates in the near future: "Businesses will be hoping that the downward trend continues and begins to have an immediate impact on interest rates in the coming months to provide better economic conditions to plan, invest and grow Welsh business with confidence."