And with signs that the death-grip of inflation is starting to ease, experts say the Bank of England may opt to inject more stimulus into the economy.
The drop in inflation was an unexpected boon for the UK, as many economists had predicted an unchanged result of 3%. However, the plunge in petrol prices helped to push the overall figures for inflation lower, according to the results from the Office for National Statistics.
Inflation has not fallen equally in all sectors, with food frequently heading in the opposite direction to the overall trend. But even this has seen a drop in price in some areas, with fruit such as grapes, peaches, bananas and nectarines all markedly lower. Vegetables, soft drinks, mineral water and juice also fell in price.
Last September inflation stood at an eye-watering 5.2% and the latest rate of 2.8% shows the figure is moving in the right direction. The government target is 2% and many experts are now suggesting it could still be reached by the end of the year.
The improvement in the cost of living opens up more avenues for the Bank of England to explore. The impact of the debt crisis in the eurozone has caused much concern, with a possible backdraft hitting the UK, even though it is not part of the single currency.
A lower than expected inflation rate means the Monetary Policy Committee can now seriously debate whether to try and stimulate growth in the economy by injecting more cash, a measure which was previously out of the question. Analysts are predicting that additional stimulus of around £50 billion could be released around July or August.