Inflation at four-year low of 2.1%

THE UK inflation rate has continued its downward trend with a further decline during November, latest figures have shown.

The Office for National Statistics said the Consumer Prices Index (CPI) had registered 2.1% in the year to November 2013, down from 2.2% in October.

The largest contributions to the fall in the rate came from food and the utilities (gas and electricity). These were partially offset by upward contributions from the transport sector and from some aspects of recreation & culture.

Jeremy Cook, chief economist at the foreign exchange company, World First, said: “The rate of inflation continued to fall in November, coming ever closer to the Bank’s 2% target, the first time it has been this close in 48 months.

“This good news may not last too long, however, given the increase in utility costs that are to hit the basket next month courtesy of recent price rises by energy providers.”