UK inflation drops to surprise 12-year low

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,...