CHEAPER pump prices last month drove inflation back to the Bank of England's two per cent target for the first time since June, official figures showed yesterday.
The cost of petrol and diesel fell for the third month in a row while air fares on European and long-haul routes rose by less in December than a year ago, the Office for National Statistics said.
The fall in the Consumer Price Index from 2.1 per cent in November was predicted by economists, who believe it strengthens the case for cutting interest rates - possibly as soon as next month.
Inflation has now fallen for three consecutive months after peaking at 2.5 per cent in September.
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