UK inflation drops to target rate

<p>UK inflation is down to two per cent for the first time in over four years.</p>

The UK's rate of inflation has fallen to the target of two per cent that is set by the government.

Data released by the Office for National Statistics (ONS) showed inflation fell from 2.1 per cent to two per cent during December.

This was the first time that inflation has dropped to the government's two per cent target since November 2009.

Phil Gooding from the ONS told the BBC that meat prices have helped to drive the fall in the inflation rate, while the increase of fruit prices – particularly bananas and grapes – was an upward pressure on the headline rate.

Prime minister David Cameron said: "It's welcome news that inflation is down and on target. As the economy grows and jobs are created this means more security for hard-working people."

But Labour's Treasury spokeswoman Catherine McKinnell stated that the "cost of living crisis" is continuing as prices are still rising more than twice as fast as wages.

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