UK annual inflation fell to a record low in January on the back of falling food and motor oil prices, according to the Office for National Statistics (ONS).

The Consumer Prices Index (CPI) stood at 0.3% in January, down from 0.5% in December and the lowest since the measure was established in 1997.

Food prices fell by 2.8% in the year to January 2015, driven mainly by falling milk prices resulting from supermarket price wars over two pint cartons - as well as a range of fruits.

The price of food and non-alcoholic drinks overall fell by 0.7% between December 2014 and January 2015, compared with a rise of 0.2% between the same two months the previous year.

Alcohol and tobacco prices increased by 1.4% between December and January, compared with a rise of 2% between the same two months the previous year.

 

 

 

Topics