UK inflation rate (CPI) falls to 1.9%

The UK inflation rate, as measured by the Consumer Price Index (CPI) fell to 1.9% in January.

This is the first time since the coalition government came to power in 2010 that either the CPI or Retail Price Index (RPI) has fallen below the Bank of England’s 2% target rate.

According to the Office of National Statistics, the fall was a result of downward price movements for recreational goods & services, furniture & household goods and alcoholic beverages & tobacco.

The most recent figures on the RPI saw it rise from 2.8% from 2.7% in December.

CPI inflation graph 2004 – 2014. ONS