UK Inflation Stages Surprise Fall In December

The underlying rate of inflation in the UK dropped to 2.7% in December, down from a four year high of 2.8% in the previous month, according to the latest figures from the Office Of National Statistics (ONS).

The fall, which is though to be due to cheaper food and clothes counteracting higher petrol and housing prices, means that the underlying rate of inflation is slowly edging back towards the Government’s target of 2.5%.

The headline rate of inflation, which includes mortgage interest payments, rose to 2.9% in December, up from 2.6% in November.

The retail prices index for December was 177.2.

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