THE annual rate of inflation as measured by the Retail Prices Index (RPI) fell for the fifth consecutive month in January.

It fell to four per cent – from 4.7 per cent in December – and is the lowest inflation figure since December 2009.

The annual rate of inflation excluding housing costs, shown by the RPI, also decreased from five per cent to 4.3 per cent.

The annual rate of inflation shown by the Consumer Prices Index fell to 3.7 per cent last month – its lowest figure since March 2010.

Treasury Minister Eddie Teare MHK welcomed the news. He said: "The ongoing fall in the inflation rate is most welcome and the good news is that we would expect it to fall further this year even though that might not be every month.

"At a time when salary awards are being kept to a minimum, for many falling inflation helps maintain real disposable incomes with resulting benefits in particular to retailers who are at the sharp end in times of economic slowdown."

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