As expected the rate of inflation fell sharply in December.
Figures released today by the Office for National Statistics (ONS) show that the Consumer Prices Index (CPI) fell from 4.8% in November to 4.2% in December, mostly due to lower fuel and clothing prices.
The Retail Prices Index (RPI), which includes mortgage interest payments, fell to 4.8% in December, from 5.2% in the previous month.
The drop in the rate of CPI inflation is the largest fall since April 2009.
Clothing, fuel and alcohol
Clothing showed a price reduction of 2.8% in December as retailers cut prices to tempt shoppers to buy before Christmas.
The cost ...