The cost of goods and services for consumers increased by 2.2 per cent between October 2012 and October 2013, according to the Office for National Statistics (ONS).
The consumer prices index (CPI) 12-month rate of inflation measures the rise or fall in the cost of household goods and services over the past year.
CPI fell from 2.7 per cent in September, the first time it has been lower than 2.5 per cent since April. The Bank of England’s stated target for CPI inflation is two per cent.
The main reasons for the fall in the rate were lower prices for fuel in the transport sector and reduced costs for tuition fees in education.
Commenting on the fall in the rate, David Kern of the British Chambers of Commerce said:
The larger than expected fall in inflation will ease pressures on businesses and consumers, particularly at a time when wages aren’t rising at the same rate. However while we expect inflation to fall further over the next year, this will not be a smooth process. Some of the October declines are likely to be reversed, especially when energy price increases take effect.