INFLATION has fallen to its lowest level for more than a year, but the cost of living is still rising faster than wages, the Office for National Statistics has said.
The level of inflation fell to 2.2 per cent in October from 2.7 per cent the month before, mainly due to a petrol pump price war that saw 4.9p cut from a litre of fuel, together with a smaller contribution for university tuition fees.
The sharper-than-expected drop took CPI to a level not seen since September 2012. It has not been lower since November 2009.
Recently-announced energy price hikes – including yesterday’s announcement from EDF of a 4 per cent rise – have yet to take effect and are likely to have an upward impact on the rate later this year.
The annual wage increase is 0.7 per cent – more than three times less than inflation.