Prices were 2.7% higher than a year ago, according to data from the Office for National Statistics, down from 3% in January.
The situation may be further improved this year, says Bank of England.
Manufacturers increased the prices they charged by the least since November 2016 as the cost of their raw materials - many of them imported - rose by 3.4 per cent, way down from a peak annual increase of almost 20 per cent in January past year.
INFLATION fell at a sharper than expected rate last month as the impact of the Brexit-hit pound on everyday prices begins to take hold. With inflation still above the Bank's 2% target, we should expect the monetary policy committee to raise the base rate from its "emergency" level in due course.
Inflation climbed in Britain to as high as 3.1 per cent in November, pushed up by voters' June 2016 decision to leave the European Union, which hammered the value of the pound and made imports more expensive.
The BoE expects wages to grow more quickly than inflation later this year.
The price of petrol and food played a key part in this month's figures.
Food prices were also applying downward pressure, lifting 0.1% between January and February in contrast to a 0.8% rise the year before.
Office for National Statistics
The fall in food price growth was partly down to a shortage of salad and vegetables past year when bad weather hit crops in southern Mediterranean countries, the ONS said. Numerous price rises in early 2017, due to the previous devaluation of the pounds, began to solve the problems in the system.
"We are increasing the National Living Wage which is already helping the lowest earners see their pay rise by nearly 7% above inflation".
Inflation fell to a seven-month low last month raising hope that there has been a "turning point" in Britain's Brexit-linked cost-of-living squeeze.
In the contrary, Luigi Marinus, portfolio manager at PPS Investments said, "This relatively low level of inflation will put pressure on the Reserve Bank to cut interest rates in their next meeting".
As the latest Resolution Foundation report, The Living Standards Outlook, revealed, the last decade has seen the most anaemic rates of wage growth for 200 years.
Prices in London alone were 2.1 percent higher than a year earlier compared with a 1.8 percent rise in December. The fact that Easter is early this year could push inflation back up again in March.
"As a result, we still think that the MPC will raise interest rates... in May", they added.