The UK’s annual inflation rate eased to 2.1 per cent in December from 2.3 per cent in November, as expected.
The Office for National Statistics said the slowdown reflected declines in petrol prices and air fares.
The Bank of England is targeting an inflation rate of 2 per cent.
“With the expectation that inflation will drop to the central bank’s target in February, the chances of further rate rises are narrowing rapidly,” said Stephen Hubble at global payments, FX and treasury management specialist Centtrip.
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