Official inflation figures released this morning show that prices rose at their slowest rate in 12 years, of one per cent in the 12 months to November.
And the government’s official number-crunchers at the Office for National Statistics said falls in fuel prices were one of the main contributors to this slowdown, as previous big increases in power bills dropped out of the year-to-year statistics.
Electricity, gas and other fuels have been one of the three main contributors to the annual inflation rate for the past five years, the ONS said.
So the recent drops in prices were a big element in month-on-month prices falling by 0.3 per cent.
But now that their prices were rising at the lowest rates in that time, this is feeding through into the overall inflation figures. Indeed, a freeze in energy bills this time last year will be reflected in next month’s figures, with experts predicting that this could mean that the main inflation rate falls even lower than the one per cent figure revealed this morning.