Inflation fell unexpectedly last month as clothing stores, facing weak market conditions, extended their seasonal sales.

National Statistics said that prices, as measured by the consumer prices index, were 1.3 per cent higher last month than in February 2003.

The figure surprised analysts, who had forecast that, with consumer confidence apparently resilient, the rate of increase would echo the 1.4 per cent figure reported in January.

The report may also make it more difficult for the Bank of England, which has been set a consumer prices index target of 2.0 per cent, to implement the interest rate rise widely predicted for May. The Bank raised rates by a quarter of a percentage point last month amid concerns over property prices which, according to recent reports, have continued to rise.

National Statistics noted "continuing weakness" in clothing prices after the January sales.

"A combination of continued special offers, lower prices for some new stocks and weaker than usual price recoveries for menswear bucked the normal seasonal trend," National Statistic said.

Prices of furniture and furnishings rose, however. "Price recoveries following the sales were stronger than a year ago," today's report said.

Mobile phone bills were also higher last month than a year before.

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