General | 15 February 2012

Inflation rate falls to 3.6%

The inflation rate for the UK declined in January as 2011's VAT rise no longer features in statistics, according to the BBC

The Office for National Statistics has noted that inflation fell from 4.6% in December 2011 to 3.6% in

January 2012 according to the Consumer Price Index (CPI).

VAT increased from 17.5% to 20% in 2011 driving up annual inflation figures.

January 2012’s figures show that CPI inflation is now the lowest it has been for 14 months.

Rental Prices Index (RPI) inflation also fell from 4.8% in December 2011 to 3.9% in January 2012 which incorporates mortgage interest repayments.

David Cameron noted on the BBC that: "Inflation is coming down and that is good news, as the cost of living is the most important issue facing families up and down the country."