THE Bank of England may cut interest rates after inflation tumbled to a record low.
Data from the Office of National Statistics (ONS) showed underlying inflation slid 0.5 per cent to 1.8 per cent last month after a sharp fall in the cost of motoring. The ONS said the average price for unleaded petrol fell by 4p per litre in November. Used car prices were also down. Adding to the downward effect was the price of fresh vegetables.
Last year, severe weather and flooding pushed the price of potatoes up, for instance, but this year plentiful supplies pushed prices down.
November's rate reached the same low level in January this year and January 1976.
Underlying inflation excludes mortgage interest payments and is used by the Monetary Policy Committee when setting interest rates.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article