Inflation dives to five-year low

UK inflation has fallen to its lowest level in five years, according to figures from the Office for National Statistics.

Inflation measured by the Consumer Prices Index (CPI) dropped to 1.1% in September, from 1.6% in August - a level not seen since September 2004. A spike in energy prices in 2008 was the main contributor to the sudden drop, which took analysts by surprise. The Retail Prices Index (RPI), a measure of inflation that includes housing costs, also fell, to -1.4% from -1.3% a month earlier.