British official annual inflation falls to 1.9%

18th February 2014, Comments 0 comments

Britain's 12-month inflation slowed to 1.9 percent in January, the lowest level for more than four years, official data showed on Tuesday.

In January, it had stood at 2.0 percent, the Bank of England's target rate.

With inflation low and British unemployment not yet below 7.0 percent, the Bank of England is likely to keep its main interest rate at a record-low level of 0.50 percent this year, according to economists.

Britain is a member of the European Union but not of the eurozone so retains responsibility for its monetary policy, and although the central bank has a high degree of independence it answers in the last resort to the government.

On a month-on-month basis, the Consumer Prices Index (CPI) fell 0.6 percent in January, the Office for National Statistics added in a statement.

© 2014 AFP

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