UK inflation at three-year low

on 16/10/2012 09:35:35

Inflation in the UK fell to its lowest level for nearly three years last month, but energy price hikes are expected to put British household finances under pressure once more.

The Office for National Statistics (ONS) said the Consumer Prices Index (CPI) fell to 2.2% in September, down from 2.5% in August and the lowest level since November 2009.

While CPI is now less than half the 5.2% seen a year earlier, gas and electricity rises are expected to push it higher after four of the "big six" energy firms announced price rises.