The Bank of England's Monetary Policy Committee (MPC) should hold off on raising interest rates even though its stated threshold for doing so - a fall in the unemployment rate to 7% - is in sight, according to a report.
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.
Vanessa Owen looks at the effect inflation can have on a retirement income
The UK's headline inflation rate has fallen to its lowest level in four years after edging down to 2.1% in November.
UK CPI inflation dropped to 2.2% in October, a larger-than-expected fall that sent sterling to a two-month low against the dollar.
UK consumer prices index (CPI) inflation remained stable in September at 2.7%.