UK inflation falls below BoE target to two-year low in January

CPI is 1.8%

Tom Eckett
clock • 2 min read

UK inflation fell to 1.8% in January, its lowest level in two years and is now below the Bank of England's 2% target.

According to the Office for National Statistics (ONS), the Consumer Prices Index (CPI) dropped to 1.8%, down from 2.1% in December. Ofgem's energy price cap, which took effect on 1 January 2019, was largely responsible, with housing and household services - where falling gas and electricity rates sit - down by 8.5% and 4.9% respectively. Air fares also came down by 25.5% over the month - though this was a lower drop than last year's 33.2% but were offset by higher ferry costs. Elsewhere accommodation services, including restaurants and hotels, saw prices dropping by 2.9% between De...

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