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The lender said prices were down 3.1% compared with a year earlier, the largest annual decline since July 2009.
Work and Pensions Secretary Mel Stride said uncertainty around life expectancy and the public finances had driven the decision - which Labour branded 'a damning indictment of 13 years of failure'.
About 1.7 UK million workers will benefit when the national living wage (NLW) rises by 9.7% to £10.42 an hour on 1 April, according to a think tank.
Train travellers are paying a premium on many routes, with train tickets costing on average a third more compared to domestic flights.
Banks say customers are rejecting traditional counter services in favour of online banking.
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