UK Inflation Rate at Five-Year Low

Wed 15 Oct 2014

The rate - as measured by the Consumer Prices Index - is the lowest since September 2009, when it was 1.1%.

Lower energy and food prices helped to cut the rate, while the Office for National Statistics (ONS) also cited cheaper transport costs as a factor.

The news sent the pound lower as analysts said a rate rise was now not likely until well into next year.

The Retail Prices Index measure of inflation fell to 2.3% from 2.4% in August.

While some economists had speculated that the Bank of England might raise interest rates from the current record low of 0.5% before the end of the year, most had expected a rise early next year.