Inflation rate drops to 2%

THE rate of inflation has continued to soften and in December was 2% – the Government’s target – down 0.1% on the previous month.

This is the lowest rate of CPI since November 2009 when it was 1.9%.

Phil Gooding from the Office of National Statistics said the downward trend had been led by the food sector with prices of fruit and meat rising at a slower rate than in the previous year.

He said consumers were continuing to feel the squeeze as pay deals were failing to keep pace with price rises.