Inflation falls to 4.2% in November
Inflation in the UK fell in November, but not by as much as analysts had predicted.
The Consumer Prices Index fell from 4.5% in October to 4.1% as falls in the cost of food and fuel kicked in but many economists had thought there would be a sharper fall.
The Retail Prices Index - which also includes house prices - fell from 4.2% to 3% as the housing market continued to plummet.
The Bank of England has slashed interest rates to just 2% in recent months in the belief that inflation will continue to fall.
It currently remains far beyond the government’s target of 2.0% but there are fears that it could eventually fall so low that deflation becomes a serious threat to the economy.
