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%.
UK CPI inflation fell from 2.8% to 2.7% in August, in line with economists' expectations, as falling transport costs pushed the headline figure down.
Official consumer prices index (CPI) inflation is expected to dip this week when official figures are released.