Inflation falls below Bank’s target

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INFLATION has fallen below the Bank of England’s two per cent target for the first time in more than four years.

The Consumer Prices Index (CPI) fell for the seventh month in a row in January, to 1.9 per cent from two per cent in December, according to the Office for National Statistics (ONS).

Experts believe the decline heralds the start of a run of below-target inflation in what will come as welcome respite for cash-strapped households.

It is hoped that inflation will continue to fall during 2014, leaving it on course to be overtaken by wage growth, which has been lagging behind rises in the cost of living.