Inflation falls to 4.1 per cent

Consumer Prices Index (CPI) annual inflation fell to 4.1 per cent in November, down from 4.5 per cent in October, according to the Office for National Statistics.

For the second consecutive month the largest downward contribution came from transport costs, which fell from an annual rate of 4.3 per cent in October to 1.3 per cent in November. This was mainly due to the price of fuels and lubricants, which fell this year but rose a year ago.

The average price of petrol fell by 9.3 pence per litre between October and November this year, to stand at 95.2 pence, compared with a rise of 3.5 pence last year. Diesel prices fell by 7.5 pence per litre this year to stand at 108.8 pence, compared with a rise of 5.0 pence last year. There was also a fall in the price of second-hand cars compared with a rise a year ago.