The UK inflation rate fell to 1.8% in January, the lowest in two years, the Office for National Statistics said.
This is down from 2.1% the previous month.
A fall in electricity, gas and other fuels drove the decline, the ONS said.
Head of Inflation Mike Hardie 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”.
It means that rises in pay are now now outpacing inflation.
The rate of inflation is now below the Bank of England’s 2% target and has fallen from the five-year peak of 3.1% in November 2017 in the wake of the Brexit referendum vote.
Energy prices fell because of Ofgem’s energy price cap which came into effect from 1 January 2019, the ONS said.
This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest version.
You can receive Breaking News on a smartphone or tablet via the BBC News App. You can also follow @BBCBreaking on Twitter to get the latest alerts.
- Joe Biden Doesn’t Even Know What State He’s Campaigning In - August 25, 2019
- Latin America Hangs On to Its Economic Gloom - August 25, 2019
- NY Times Admits Editor’s Comments Were Racist, Antisemitic - August 25, 2019
- WTH? CNN Guest Claims Trump ‘May be Responsible for Many More Million Deaths’ Than Hitler, Stalin, and Mao (WATCH) - August 25, 2019
- Rory McIlroy fan hit by lightning at golf event ‘bruised and shaken’ - August 25, 2019