The Consumer Prices Index (CPI) measure of price inflation has slowed slightly in the twelve months to October, to 5% from 5.2% the previous month.
There was also a slight slowing in the rate of the Retail Prices Index (RPI), from 5.6% to 5.4%. RPI inflation includes housing and mortgage interest costs.
Lower prices for food, air transport and fuel all helped to slow down the rate of price inflation in the year to October.
Whilst both measures of price inflation remain stubbornly high and well above the government target, it is reassuring to see that they have not risen further this month.
The Bank of England remains confident inflation will start to fall back towards the government target next year.
The official inflation target is 2%, which has prompted the Bank of England Governor to write another letter to the Chancellor, explaining why inflation remains above target.
With the UK economy remaining in a fragile state, it seems unlikely that the Bank will use interest rates to bring inflation under control. Instead they are likely to rely on the fact that when the VAT increase falls out of the calculation at the start of next year, inflation will start to fall.
Hopefully global commodity prices will also start to ease next year, which will allow price inflation to fall faster.
High price inflation combined with low interest rates has been bad news for savers in recent years. Whilst these latest figures show inflation heading in the right direction, it could take many months or years before it returns to a more tolerable level for savers.
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