Inflation continues to fall

THE headline rate of inflation continued its downward trend in September, new figures revealed this morning.

CPI inflation fell from 2.5% to 2.2% while the broader RPI measure fell from 2.9% to 2.6%.

The CPI measure has fallen from 5.2% a year ago. The Government said this was the lowest rate of inflation since November 2009 when it was 1.9%.

Inflation is now close to the Bank of England’s target of 2% but rising energy and food prices are expected to push it higher next year.