Inflation hits 2% target for first time since 2009

UK inflation fell in December, hitting its long-term target of 2 per cent for the first time since 2009, according to data from the Office for National Statistics (ONS)

The rate of inflation fell between November and December due to slowing price rises for food & non-alcoholic beverages and recreational goods & services.

The consumer prices index (CPI) rose by 2 per cent in the year to December 2013, which was below market forecasts of 2.1 per cent and down from the 2.1 per cent rise in November.

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The Office for National Statistics said the downward pressure from food and non-alcoholic drinks was partially offset by an acceleration in the rise of the price of fuel.

The rate of inflation has fallen significantly in recent months, dropping from 2.9 per cent in June 2013.