Inflation falls and hits the Bank of England's target

For the first time in four years, Britain's official rate of inflation is in line with the Bank of England's target level.

Britain's official inflation rate has finally fallen to meet the Bank of England's target level for the first time in four years. The consumer price index (CPI) inflation rate fell to 2% in December, with the fall mainly due to food prices rising more slowly.

Core inflation, which strips out food and energy prices, also eased to stand at 1.7%. However, the old measure of inflation, the retail prices index (RPI), ticked up from 2.6% to 2.7%.

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