UK inflation rate means benefits still losing value
The UK inflation rate fell to 2% in December, the Bank of England has confirmed.
It showed a fall of 0.1% compared to the previous month on the CPI measure, which excludes most housing costs, and is the first time it has been within its target since November 2009.
Slower food price rises were behind the fall, along with pre-Christmas discounts by retailers keen to boost their festive trading figures.
The RPI measure rose by 0.1% to 2.7%, showing that rent and house buying costs are still rising.
