UK inflation rate falls to 4.2% in December

Inflation fell sharply in December on the back of lower fuel and clothing prices.

Consumer Prices Index (CPI) inflation in the UK fell to 4.2% in December, down from 4.8% in November, according to the Office for National Statistics (ONS).

Retail Prices Index (RPI) inflation - including mortgage interest payments - fell to 4.8% from 5.2%.

It backs Bank of England predictions that inflation will be 2% by late 2012.

Hugh Pym reports.

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