Inflation nears two-year low as December CPI falls to 2.1%

Caused by falling oil price

Laura Dew
clock • 2 min read

UK inflation fell from 2.3% to 2.1% in December, approaching its lowest rate for two years, according to the Office for National Statistics (ONS).

The Consumer Price Index (CPI) fell to 2.1% in December as a result of downward pressure from petrol prices and air fares. This is the lowest figure since January 2017, when inflation was 1.8%.  Falling crude oil prices led to petrol prices reducing by 6.4 pence per litre between November and December 2018, compared with a rise of 0.8 pence per litre between November and December 2017. The price of petrol at the pump, in December 2018, was the lowest since April 2018. Falling oil price causes CPI inflation to drop to 2.3% in November This was somewhat offset by upward contributions...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why the lead-up to the Budget may have been worse than the Budget itself

Why the lead-up to the Budget may have been worse than the Budget itself

What Rachel Reeves and Dr Evil have in common

Laith Khalaf
clock 13 November 2024 • 4 min read
Bank of England meets expectations with 25 basis point rate cut to 4.75%

Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

Valeria Martinez
clock 07 November 2024 • 2 min read
'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read