“This startling fall in inflation will further reassure people and businesses that there is light at the end of the tunnel in the struggle against eye-watering price rises.
“Inflation should continue slowing at a decent pace next year as a struggling economy and lower food costs help drag the headline rate to within touching distance of the Bank of England’s 2% target by the Autumn.
“Easing core and services inflation suggest that underlying price pressures are relenting. The likely squeeze on wages from rising unemployment and a stagnating economy should help to continue to keep them on a downward trajectory.
“These inflation numbers suggest that the Bank of England is too pessimistic in its rhetoric over when interest rates could start falling. A deteriorating economy could push the Bank to start loosening policy by the Autumn, particularly if inflationary pressures continuing easing.”
Notes to editors: