UK inflation falls to 5%

The UK consumer prices index has fallen to 5 per cent in October, according to the Office for National Statistics.

The consumer prices index is down 0.2 per cent from 5.2 per cent in September. The retail prices index fell to 5.4 per cent, from 5.6 per cent in September.

The ONS says the largest downward pressure came from falls in the cost of food, on the back of widespread discounting by supermarkets and good harvests for certain produce, as well as air fares and petrol. There were upward pressures from increases in the cost of clothing, electricity and gas.

Last month saw RPI hit its highest point since June 1991, when it was 5.8 per cent.

The Bank of England’s target rate for CPI is 2 per cent.