UK inflation slows to 3-year low

The UK’s inflation rate fell to its lowest for more than three years in December, official figures show.

The Consumer Prices Index rate dropped to 1.3 per cent last month, down from 1.5 per cent in November, the Office for National Statistics (ONS) said.

A fall in the price of women’s clothes and hotel stays helped the drop. The slower rate of price increases comes as the Bank of England is considering whether to cut interest rates.

Yesterday, Michael Saunders, one of the rate setters at the Bank, reiterated his view that borrowing costs should be lowered.

Last week, two other rate setters and Bank governor Mark Carney suggested that rates could be cut, depending on how the economy performs.

 

UK inflation slows to 3-year low

The UKs inflation rate fell to its lowest for more than three years in December, official figures show. The Consumer Prices Index rate dropped to 1.3 per cent last month, down from 1.5 per cent in November, the Office for National Statistics (ONS) said. A fall in the price of womens clothes and hotel stays helped the drop. The slower rate of price increases comes as the Bank of England is considering whether to cut interest rates. Yesterday, Michael Saunders, one of the rate setters at the Bank, reiterated his view that borrowing costs should be lowered. Last week, two other rate setters and Bank governor Mark Carney suggested that rates could be cut, depending on how the economy performs.