UK Inflation Decline

UK Inflation Decline.

The consumer price index measures inflation in the UK and has found that for the first time in four years UK inflation fell below the Bank of England’s (BOE) target of 2% to 1.9%.

The Office for National Statistics (ONS) measured inflation in December and found it rose from 2.7% to 2.8%.

Leisure activities are just one of the reasons that are being linked to the drop, with DVD prices and lower entrance fees for attractions in the UK. Alcohol and tobacco are also being linked with the drop.

The Bank is still maintaining that interest rates would not rise for some time. Prime Minister David Cameron tweeted “Today's fall in inflation is more evidence our long term economic plan is working”.