UK inflation drops to surprise 12-year low

UK CPI inflation fell further than expected in November to its lowest level since 2002, according to the Office for National Statistics (ONS).

The ONS said today that CPI inflation fell from 1.3% in October to 1% in November, a 12-year low. Economists had expected a drop to 1.2%. The statistics agency hinted that the falling oil price is in part responsible for the drop: the ONS said drops in transport costs, notably for motor fuels and air transport - as well as a fall in second-hand car costs - were a significant contributor to the monthly slowdown. Drops in the prices of recreational and cultural goods were also a factor, the ONS added. CPIH, a measure which includes housing costs but which is not a national statistic,...