Consumer inflation drops to 4.5%

News Article - 19 November 2008
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Consumer inflation in the UK dropped to 4.5 per cent in October, figures from the Office for National Statistics (ONS) have revealed.

The decline in the Consumer Prices Index (CPI) measurement, from 5.2 per cent in September, was the largest month-on-month fall for 16 years.

According to the ONS, a drop in transportation costs helped lower inflation.

A statement from the organisation read: "The largest downward pressure on the CPI annual rate came from transport costs where the price of fuels and lubricants fell this year but rose last year.

"The decrease this year was triggered by a sharp fall in the price of crude oil."

However, at 4.5 per cent, the inflation rate according to the CPI was higher than the European Union's provisional figure for October, which was 3.7 per cent.

A decline was also recorded in the Retail Prices Index (RPI) inflation measure, from five per cent to 4.2 per cent, its largest drop since 2003.

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