UK inflation has dropped down to 2.8% in a last-minute boost for chancellor Rachel Reeves before she announces her Spring Statement this afternoon.

The Office for National Statistics confirmed the Consumer Prices Index, which measures how the prices for goods and services increases over 12 months, has declined from its January rate of 3%.

The ONS said inflation fell lower than expected – economists had predicted a fall to 2.9% – due to a fall in the price of women’s clothes which was only partially offset by other prices such as small increases in alcoholic drinks.

It means the UK is one step closer to reaching the Bank of England’s target of 2% inflation.

It will come as welcome news for Reeves, who was already braced to deliver further spending cuts in her statement to the Commons today in yet another bid to get the country back on its feet.

Labour has so far to deliver the economic growth it promised to put at the heart of government – the economy even shrunk in January, as there was a 0.1% decline in GDP.

In a further moment of embarrassment for Downing Street, the Office for Budget Responsibility claimed the government’s benefits reforms would raise £1.6 billion less than the chancellor had hoped.

That means Reeves is expected to announce further welfare cuts in her Spring Statement to try and balance the books, according to The Times.

The chancellor has refused to breach her own fiscal rules and borrow for day-to-day spending, which is why she keeps having to trim down the state.

Only the defence sector is expected to get a boost in today’s Spring Statement amid the ongoing Ukraine crisis.

Reeves will announce exactly how she will set out the £2.2bn extra boost to the Ministry of Defence which the government has paid for by cutting foreign aid cuts.