LONDON – Official figures show that inflation in Britain fell to a 4-year low in November, thanks in part to decreases in the prices of food, gas and electricity.
The Office of National Statistics reported Tuesday that inflation dropped to 2.1 per cent in the year to November from 2.2 per cent in October.
Samuel Tombs, U.K. economist at Capital Economics, cautioned that inflation may edge up next month as recent domestic energy price rises are included. Further out, Tombs said inflation may fall below the Bank of England’s 2 per cent target given that price pressures across much of the economy appear to be weakening.
Even though the rate is still above the Bank of England’s target, policymakers will likely be reassured to keep interest rates low for a while yet.