Petrol cost cuts lead to inflation drop

Petrol cost cuts lead to inflation drop

Cheaper prices at the petrol pumps have led to a sharp fall in inflation, with the Consumer Prices Index (CPI) rate standing at 1% in November.

The CPI level measuring the cost of living fell more steeply than expected from its 1.3% level for October, said the Office for National Statistics.

And the continuing fall in global oil prices, which will hopefully offer even more good news for motorists, indicates that the CPI level could drop below the 1% mark early next year.

Bank of England governor Mark Carney will have to write to Chancellor George Osborne to explain why inflation is more than 1% off the 2% target, if it dips below the 1% mark.

CPI has not been as low as 1% since September 2002 and it was last lower in June 2002.

The figure has now been at or below the 2% target for 12 months in a row.

Copyright Press Association 2014