Inflation dips below 2%

THE headline rate of inflation fell again last month to 1.9% – the first time it has fallen below 2% since November 2009.

The reduction follows a period of heavy discounting by retailers.

The Office for National Statistics (ONS) said the fall was down to falling prices for recreational goods and services, furniture and household goods, and alcoholic drinks and tobacco.

These were partially offset by upward pressure on miscellaneous goods and services.

The ONS said the Retail Prices Index (RPI) figure – which includes housing costs – rose from 2.7% to 2.8%.

Inflation is now just under the Government’s 2% target.