Inflation falls to two year low

The Consumer Prices Index (CPI) figure was the lowest in nearly two years, pushed down by petrol price falls.

The inflation reading was in line with analysts’ expectations.

The figure is close to the Bank of England’s target of 2 per cent and may mean the Bank is less likely now to consider any rate rises in the near future.

Head of inflation at the ONS, Mike Hardie, said: “Inflation eased mainly due to a big fall in petrol, with oil prices tumbling in recent months.

“Air fares also helped push down the rate, with seasonal prices rising less than they did last year. These were partially offset by small rises in hotel prices and mobile phone charges.

“House price growth was little changed in the year to November, with buoyant growth across much of the UK held back by London and the South East.”

Ruth Gregory, senior UK economist at Capital Economics, said: “With inflation within a whisker off its 2 per cent target, the [Bank of England’s rate-setting] monetary policy committee will probably feel comfortable in waiting until Brexit uncertainty is resolved before moving again.”