Cheaper transport costs saw the Consumer Prices Index (CPI) annual inflation fall to 4.5 per cent in October, down from 5.2 per
cent in September.
This deceleration by 0.7 percentage points is the biggest slow-down since January 1997 when official CPI records began and the largest
since April 1992, based on constructed historical data.
Transport inflation fell to 4.3 per cent in October, from 7.6 per cent in September. This 3.3 percentage point deceleration is the largest
slow-down since CPI records began. It was triggered by a sharp fall in the price of crude oil.
The average price of petrol fell by 7.1 pence per litre between September and October this year, to stand at 104.5 pence,
compared with a rise of 2.7 pence last year. Diesel prices fell by 7.0 pence per litre this year, to stand at 116.3 pence.
There was also a fall in the price of both air transport and sea transport. The effect from air fares came mainly from the cost of
European flights.
There was another large downward contribution from food and nonalcoholic beverages. The effect came largely from the cost of meat,
which fell this year compared with a rise last year. Meat inflation fell, to 14.3 per cent in October, from 19.1 per cent in September. Prices
fell for a range of pork products and beef prices fell, with discounting in supermarkets.
