Inflation nears two-year low as December CPI falls to 2.1%

Caused by falling oil price

UK inflation fell from 2.3% to 2.1% in December, approaching its lowest rate for two years, according to the Office for National Statistics (ONS).

The Consumer Price Index (CPI) fell to 2.1% in December as a result of downward pressure from petrol prices and air fares. This is the lowest figure since January 2017, when inflation was 1.8%.  Falling crude oil prices led to petrol prices reducing by 6.4 pence per litre between November and December 2018, compared with a rise of 0.8 pence per litre between November and December 2017. The price of petrol at the pump, in December 2018, was the lowest since April 2018.  Falling oil price causes CPI inflation to drop 2.3% in November  This was somewhat offset by upward contributions ...