Inflation falls to three-year low on back of high street discounting

CPI at 1.3% in December, putting pressure on Bank of England to cut interest rates

UK inflation has dropped to its lowest level for more than three years, fuelled by struggling retailers offering a wider range of discounts in December.

Raising pressure on the Bank of England to cut interest rates, the annual rate on the consumer price index (CPI) dipped to 1.3% in December from 1.5% in November, the weakest since November 2016, according to the Office for National Statistics.

Related: MPC may need more data before it considers cutting interest rates