New data released today (February 18th) shows that inflation in the UK has fallen below the two per cent target set by the government.
Figures from the Bank of England show UK inflation dropped to 1.9 per cent during January, which is below the two per cent benchmark for the first time in four years.
Prime minister David Cameron used his Twitter account to show support for the news. He said: "Today's fall in inflation is more evidence our long term economic plan is working. We want to ensure a secure future for hard-working people."
But in response, the Labour Party pointed out that the price of goods and services is continuing to rise at a faster pace than wages are for most people in the UK.
The news on inflation might increase speculation that the Bank of England could soon consider a rise in interest rates. The base rate in the UK has stood at a record low for the country of 0.5 per cent for the last five years.
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