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| UK inflation rate falls to 1.2% | UK inflation rate falls to 1.2% |
| (35 minutes later) | |
| The UK inflation rate, as measured by the Consumer Prices Index, fell to 1.2% in September from 1.5% the month before, official figures show. | |
| The rate is the lowest since September 2009, when it was 1.1%. | |
| Lower energy and food prices helped to cut the rate, and the Office for National Statistics (ONS) also cited cheaper transport costs as a factor. | |
| The Retail Prices Index measure of inflation fell to 2.3% from 2.4% in August. | |
| The CPI is the rate the Bank of England targets and it is charged with keeping inflation at about 2%. Analysts say the steep fall in the inflation rate means the timing of the much-talked about interest rate rise is likely to be pushed back. | |
| "With inflation predicted to fall further in the coming months, those hoping for a pre-election interest rate rise are highly likely to be disappointed," said Ben Brettell, senior economist at Hargreaves Lansdown. | |
| Wages lag | |
| The ONS figures showed the cost of fuel has fallen 6% from September last year, while food prices are down 1.5% as the supermarket price wars begin to take effect. | |
| The fight for market share between leading supermarkets is intensifying and the downward pressure on food prices is expected to continue to press down on inflation. | |
| However, the ONS said that the biggest factors behind the fall in September's inflation rate were cheaper transport costs (notably sea fares and air fares) and lower prices for a range of recreational goods, including items such as tablet computers and games consoles. | |
| Despite the fall in inflation, average income is not keeping up. Last month's official figures showed average earnings, excluding bonuses, in the May to July period rose by 0.7% from a year earlier; New figures on employment and income are being released on Wednesday, |