According to the UK government’s Office for National Statistics, the nation’s underlying rate of inflation fell to its lowest level since records began in 1976.

In a statement yesterday, the ONS reported that retail price inflation (excluding mortgage interest payments) sank 0.2% to an annual rate of 1.8% in January. A key factor was the fall in petrol prices. The headline rate, which takes mortgages into account, also fell by a similar margin, dropping to 2.7%, the lowest since last March.

The money manipulators were joyous at the news: "This is an incredibly soft figure. The UK has no problem with inflation. This leaves the door open for further [interest] rate cuts," said Deutsche Bank’s Ciaran Barr.

News source: Financial Times