Inflation fell sharply in December on
the back of lower fuel and clothing prices.
Consumer Prices Index (CPI) inflation in the UK fell to 4.2% in December,
down from 4.8% in November, according to the Office for National Statistics
(ONS).
Retail Prices Index (RPI) inflation - including mortgage interest payments -
fell to 4.8% from 5.2%.
It backs Bank of England predictions that inflation will be 2% by late
2012.
the back of lower fuel and clothing prices.
Consumer Prices Index (CPI) inflation in the UK fell to 4.2% in December,
down from 4.8% in November, according to the Office for National Statistics
(ONS).
Retail Prices Index (RPI) inflation - including mortgage interest payments -
fell to 4.8% from 5.2%.
It backs Bank of England predictions that inflation will be 2% by late
2012.
The drop in the CPI rate was the biggest monthly fall since April 2009, and
the lowest rate since June 2011.
The figures reflected a 2.8% drop in the price of clothing and footwear as
retailers cut prices to attract customers in the run-up to Christmas.
Fuel prices fell 0.6% on the month, although this month's gas and electricity
cuts by the main suppliers have yet to take effect.
However, food prices rose by 1.4%, despite recent fierce competition between
the main supermarket chains.
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