UK inflation fell to 2.1% in December, down from 2.3% in November, according to the latest figures from the Office for National Statistics (ONS).
The fall was largely driven by a lowering of petrol prices, the ONS said. The drop proved in line with analyst expectations.
Inflation has been largely falling since reaching a six month high of 2.7% in August.
Last month’s inflation figure proves closer to the Bank of England’s target of 2%, suggesting that a future rate hike may prove unlikely.
Back in December, the Bank of England opted to keep interest rates on hold in light of continued Brexit-related uncertainty.
Uncertainty only seems set to continue after the Prime Minister was heavily defeated in a Commons vote on her Brexit deal last night.
The head of inflation at the ONS, Mike Hardie, commented: “Inflation eased mainly due to a big fall in petrol, with oil prices tumbling in recent months.
“Air fares also helped push down the rate, with seasonal prices rising less than they did last year. These were partially offset by small rises in hotel prices and mobile phone charges.
“House price growth was little changed in the year to November, with buoyant growth across much of the UK held back by London and the South East.”
