The Office for National Statistics (ONS) report showed that housing and household services as well as clothing and footwear sectors also contributed to the fall.
Inflation measured by the Retail Price Index (RPI) fell to 2.7 per cent in the year ending February 2014, from 2.8 per cent in January.
According to the ONS, diesel prices dropped by 0.8p, while smaller price rises in clothing and footwear as well as electric bills and household gas also eased the pressures on inflation.
Average total earnings also rose in the three months to January by 1.4 per cent compared to last year.
John Allan, National Chairman, Federation of Small Businesses, said: This lower interest rate marks a positive development for our members as the economy continues to grow. Small businesses are keenly aware of the importance of keeping the cost of doing business down.
“With more than four in five of FSB members relying on the road networks for their businesses, the reduction in the cost of fuel should help small firms.
FSB members are also telling us they are beginning to raise staff pay so with this lower inflation rate, workers will begin to see feel the increase of wage rises in their pockets.