Bigger than expected fall to 1% offers respite for hard-up Britons as plunging oil price feeds into cheaper petrol
Plunging oil prices are starting to feed through to UK consumers’ pockets after inflation fell to just 1% for the first time in 12 years last month.
The consumer price index is now half the Bank of England’s 2% target, largely because the slide in the oil price is being reflected at the UK’s petrol pumps. The last time annual inflation was as low as 1% was September 2002, and it is expected to fall further in the new year to below 1%.