Consumer prices in the U.K. rose 4.2% in December compared to the same month last year, down from a 4.8% annual rate in November, the U.K. Office for National Statistics said on Tuesday. "The last time there was a larger fall in annual inflation was between November and December 2008," the office said in a statement.
The largest downward pressures to the change in CPI annual inflation came from petrol, gas and clothing. Chris Williamson, chief economist at Markit, said that "further falls are likely in coming months, reducing the squeeze on incomes seen last year and therefore providing a much needed boost to economic growth in 2012."
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