The inflation rate in the United Kingdom has fallen sharply during the month of December due to the decrease in the prices of petrol and clothing.
The Consumer Prices Index inflation has declined to 4.2 percent from the recorded 4.8 percent during the month of November, according to figures that were released by the Office for National Statistics.
The retail Prices Index inflation, a figure which includes mortgage interest payments has declined to 4.8 percent from its previous record of 5.2 percent.
The figures that have been released to the public are proof of the estimates that have been made by the Bank of England that inflation will be at 2 percent by the end of the year 2012.
The decrease in the CPI inflation is considered the biggest monthly decline since April 2009 and the lowest inflation rate since June 2011.
There was a 2.8 percent decline in clothing and footwear prices because of the discounts that were given by the retailers in line with the holiday season.
The price of petrol was also down by 0.6 percent during December.
Prices of food have increase by 1.4 percent even when there was a tough competition among the big supermarket chains.
According to Chris Williamson from Markit, “Further falls are likely in coming months, reducing the squeeze on incomes seen last year and therefore providing a much-needed boost to economic growth in 2012. The data therefore add support to the Bank of England’s expectation that inflation will drop below its 2% target by the end of the year.”
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