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Official figures show inflation is falling

Official figures show inflation is falling

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Consumer prices index inflation (CPI) fell in the year leading up to October, it has been revealed.

The latest Office for National Statistics (ONS) data shows that the CPI figure stood at 4.5 per cent for this period, indicating a 0.7 per cent drop compared to the previous month.

September's CPI rate was recorded at 5.2 per cent, but falling fuel and food prices drove the figure downwards over the following weeks, the ONS noted.

A "sharp fall" in the cost of oil and a "large contribution" from cheaper food products helped to push the CPI level down, it stated.

Falling meat prices, particularly for beef and pork, were a large factor in lowering the cost of food, it added.

Sceptics will "no doubt be surprised" that prices have dropped so quickly after the recent interest rate cuts, said economist Ian Kernolan from Royal London Asset Management.

The Bank of England could potentially be prompted to make further base rate cuts if inflation continues to fall.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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