UK CPI tumbles to 0.5 percent

FXStreet (London) - The UK Consumer Prices Index (CPI) grew by 0.5 percent in the year to December 2014, down from 1.0 percent in November, according to the Office for National Statistics.

According to the ONS, the main contributions to the fall came from the December 2013 gas and electricity price rises falling out of the calculation and the continuing drop in motor fuel prices.

However core inflation rose in December to 1.3 percent year-on-year, up from 1.2 percent last month. This is despite some expectations that early and heavy discounting in the run up to Christmas would hold down prices.