Breaking news: Inflation falls in December
THE fall in the headline rate of inflation accelerated in December dropping to 4.2%.
The decline in the consumer prices index from 4.8% is the biggest monthly drop since it hit a three year peak in September last year of 5.2%.
Reductions in the cost of petrol, gas and clothing were the biggest downward pressures on prices according to the Office for National Statistics.
Coverage of the inflation data is brought to readers of TheBusinessDesk.com in association with stockbrokers Redmayne-Bentley.
Senior stockbroker David Scott said: “This marks the biggest month-to-month fall in the annual inflation rate since April 2009, when the UK was suffering the effects of the last recession.
“RPI inflation fell to 4.8% in December, down from 5.2% in November. CPI inflation still remains above the Bank of England’s 2% target and whilst it has been falling from its three-year peak of 5.2% in September the Bank of England expects this to accelerate this year as the economy slows and the effects of last year’s VAT rise drops away.”
Analysts had forecast the fall to 4.2% on the back of supermarket price competition and high street retailers struggling to convince consumers to part with their cash.
The last time CPI inflation fell faster was in 2008 when the standard rate of VAT was cut.
