UK inflation dipped to 1.8% in January as a result of falls in electric, gas and fuel prices, according to the latest official figures.

The Office for National Statistics (ONS) said that the introduction Ofgem’s energy price gap helped ease inflation over the period.

This marks a two-year low for inflation, and below the Bank of England’s target of 2%.

Mike Hardie, ONS head of inflation, said: “The fall in inflation is due mainly to cheaper gas, electricity and petrol, partly offset by rising ferry ticket prices and air fares falling more slowly than this time last year.”

The CPIH 12-month rate was 1.8% in January 2019, down from 2.0% in December 2018 https://t.co/mJHB1j4pH9 pic.twitter.com/xn5SjaV7wA

— ONS (@ONS) 13 February 2019

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UK inflation levels have been falling since reaching a six-month high of 2.7% in August.

In December, inflation fell to 2.1%, casting doubts on an impending rate hike by the Bank of England.

Indeed, earlier this month, The Bank of England’s Monetary Policy Committee unanimously opted to hold interest rates, after downgrading its economic outlook to 1.2% of GDP.

This central bank had previously forecast growth of 1.7% back in November.