UK inflation falls to lowest level in two years

Drop in fuel and clothing prices spur drop to 2.1%, offering respite to consumers

UK inflation fell to its lowest level in nearly two years in December after a drop in petrol prices offered some respite to consumers who are reining in spending as Brexit looms.

The annual rate dipped to 2.1% from 2.3% in November, the weakest since January 2017, according to the Office for National Statistics. Economists said the drop reduced the likelihood that the Bank of England would raise interest rates in the near future.

Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.

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