Inflation falls to 4.5%

18 November 2008

The 0.7% fall in the Consumer Prices Index is the biggest slow-down
since January 1997 when official CPI records began and the largest
since April 1992, based on constructed historical data.

Transport inflation fell to 4.3% in October, from 7.6% in September.

This 3.3% point deceleration is the largest slow-down since CPI records began. It was triggered by a sharp fall in the price of crude oil.

The average price of petrol fell by 7.1p per litre between September and October this year, to stand at 104.5p, compared with a rise of 2.7p last year.

Diesel prices fell by 7p per litre this year, to stand at 116.3p. There was also a fall in the price of both air transport and sea transport.

The effect from air fares came mainly from the cost of European flights.

There was another large downward contribution from food and non-alcoholic
drinks.