Inflation in Britain down to 2.2 per cent in October, lowest level in a year

LONDON – Official figures say inflation in Britain fell to 2.2 per cent in October, its lowest level in more than a year, thanks in part to a sharp drop in gas prices.

The Office of National Statistics reported Tuesday that annual consumer price inflation was down from 2.7 per cent in September. It has not been this low since September 2012 — and has not been lower since November 2009.

The rate is still above the Bank of England’s long-elusive target of 2 per cent but its drop supports the view that interest rates will remain low for a protracted period of time.

Howard Archer, an analyst with IHS Global Insight, said the dip was good news for consumers. But he noted it “is still running at three times average annual earnings growth.”