UK Inflation Rate Drops To 3.6 Percent

Published February 14, 2012 10:00AM (EST)

LONDON (AP) — Official figures show Britain's inflation rate fell to 3.6 percent in the year to January from 4.2 percent a month ago — but remains above the Bank of England's target.

The figure, published by the Office for National Statistics Tuesday, was in line with expectations and puts inflation below 4 percent for the first time since December 2010.

The fall came as last year's sales tax increase dropped out of the annual comparison. Lower fuel prices also contributed to the decline.

The U.K. inflation rate peaked at 5.2 percent in September.

Even though inflation has been running above the Bank's 2 percent target, rate-setters have kept borrowing costs at very low levels and recently backed another monetary stimulus in response to waning economic growth.

By Salon Staff

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