UK inflation at three-year low of 1.5% as energy prices fall

Heavy discounting at furniture stores also helps pull down rate from recent peak of 3.1% in 2017

Inflation fell to 1.5% in October, its lowest level in three years, pushed down by heavy discounting at furniture stores and a decline in the price of energy.

The Office for National Statistics said price cuts across the recreation and culture sectors coupled with the falling cost of household goods more than offset increases to clothing and footwear to pull down inflation from its recent peak of 3.1% in 2017.

RPI
In 2013, the retail prices index (RPI) lost its status as a national statistic, as the Office for National Statistics (ONS) said the way it calculated prices was likely to overstate the rate of inflation. The treatment of housing costs is also a problem, as RPI uses a combination of mortgage interest payments and house prices as a proxy for housing depreciation. In a period of rapidly rising house prices, inflation accelerates ahead of a basket of goods and services bought by most consumers.