Britain's Inflation Rate Is At A 4-Year Low

BalloonsREUTERS/Stefan WermuthA balloon rises into the sky during the International Balloon Fiesta near Bristol in western England, August 7, 2009.

Britain’s 12-month inflation rate slowed to 2.1 per cent in November, the lowest level for four years, as food and energy price rises slowed, official data showed on Tuesday.

Annual inflation had stood at a year-low of 2.2 per cent in October, the Office for National Statistics (ONS) said in a statement.

“The Consumer Prices Index (CPI) grew by 2.1 per cent in the year to November 2013, down from 2.2 per cent in October,” the ONS said.

“The largest contributions to the fall in the rate came from food and the utilities — gas and electricity. These were partially offset by upward contributions from the transport sector and from some aspects of recreation and culture,” it added.

At 2.1 per cent, the rate was the lowest level since November 2009.

The Bank of England’s main task is to use monetary policy as a tool to keep annual inflation close to a government-set target of 2.0 per cent, in order to preserve the value of money.

The annual CPI rate has held above this target level since November 2009 but has dropped from a level of more than five per cent in the space of two years.

Copyright (2013) AFP. All rights reserved.

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