The UK inflation rate fell to the lowest recorded level of 0.5% in December, according to the office of national statistics (ONS).
It is only the second time inflation has been at this level, since May 2000, which the ONS said came from the December 2013 gas and electricity price rises falling out of its calculation and the continuing drop in motor fuel prices.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
A drop below 1% will trigger a letter of explanation from Bank of England governor Mark Carney to George Osborne, as the Consumer Prices Index rate is over 1% from the Bank of England’s 2% target.
The Bank of England monetary policy is to deliver price stability, supporting the UK government’s economic growth and employment targets, defined by the Government’s inflation target of 2%.
But the Chancellor announced the rates as good news, and said: "Inflation is 0.5% – lowest level in modern times. Welcome news with family budgets going further & economic recovery starting to be widely felt."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
