UK Inflation Slows On Falling Oil Prices

UK annual inflation slowed in December on falling motor fuel and oil prices, sitting just above the Bank of England's target, official data showed Wednesday

London, (UrduPoint / Pakistan Point News - 16th Jan, 2019 ) :UK annual inflation slowed in December on falling motor fuel and oil prices, sitting just above the Bank of England's target, official data showed Wednesday.

The Consumer Prices Index 12-month rate declined to 2.1 percent last month from 2.3 percent in November, the Office for National Statistics (ONS) said in a statement.

The December reading matched market expectations and stood a whisker away from the Bank of England's official target level of 2.0 percent.

"Inflation eased mainly due to a big fall in petrol, with oil prices tumbling in recent months," said Mike Hardie, head of inflation at the ONS.

"Air fares also helped push down the rate with seasonal prices rising less than they did last year.

"These were partially offset by small rises in hotel prices and mobile phone charges," Hardie added in the statement.

The Bank of England is tasked with using monetary policy as a tool to keep 12-month UK inflation close to 2.0 percent.

Last month the BoE voted to keep its main interest rate at 0.75 percent, as it warned over "intensified uncertainties" surrounding Brexit.

British Prime Minister Theresa May will face a confidence vote Wednesday, after MPs overwhelmingly rejected her deal on Britain leaving the European Union.