UK inflation falls to 2%; hits target for first time in four years

clock

The UK's headline rate of inflation fell to 2% in December, meeting the government-set target for the first time since November 2009, official figures show.

The Consumer Prices Index (CPI) dropped from 2.1% in November to meet the Bank of England's long-term target, the latest reading from the Office for National Statistics (ONS) revealed. The drop confounded most economists who had forecast it remaining at 2.1%. Meanwhile, the Retail Prices Index (RPI) rose to 2.7% from 2.6% in November. Falls in utilities and food prices over the last few months have helped bring inflation down, according to the ONS, with last month's fall again driven by these factors. UK CPI has dropped from 2.9% in the Summer. A spokesperson for the Treasury...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Spring Budget 24: Chancellor unveils long-term UK growth plan

Spring Budget 24: Chancellor unveils long-term UK growth plan

Includes British ISA launch and further NI cut

clock 06 March 2024 • 1 min read