Consumer Price Index inflation falls to 1.9%

The rate of Consumer Price Index inflation fell to 1.9% in January from 2% in December, official figures showed today. The headline rate of Retail Price Index inflation rose to 2.8% from 2.7% the month before, the Office for National Statistics said.

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Inflation figures to stay where they are for some time

by - Economics Editor

Energy prices used to get the blame for pushing up inflation but not this month.

Small rises from some energy companies were cancelled out by the removal of green taxes.

Read: Fuel bill cuts after Government pledge

Looking at the detail of the components of inflation usually gives some insight in which way the wind is blowing but this month things look to have ground to a halt.

Lines of electricity
Prices have fallen for unusual things, whilst upward pressure came from items such as baby wipes and toothbrushes. Credit: Reuters

Prices have fallen for peculiar things like "cultural events" - winter prices are lower at some attractions ­and DVDs.

Upward pressure came from baby wipes and toothbrushes. I¹m not making this up.

Reading the runes in that mix would be very hard except perhaps the very lack of direction tells us that inflation will stay where it is for some time.

More: Puzzling good inflation fall good news for borrowers

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Alexander: The long term economic plan is working

Chief Secretary to the Treasury Danny Alexander has said that today's inflation figures are evidence the long term economic plan "is working."

Inflation falling below 2% for the first time since November 2009 is further evidence that our long term economic plan is working. Controlling inflation and rebuilding our economy are the only sustainable ways to secure living standards for the future.

– Danny Alexander

House prices rose by 5.5% in the year to December

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UK House prices grew 5.5% in the year to December, up from 5.4% last month http://t.co/GHd6tRacQj #inflation

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House prices grew 5.7% in England, 4.8% in Wales, 0.5% in Scotland & 4.8% in N.Ireland http://t.co/vNlZU0qtOI #inflation

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