DHAKA: UK consumer price inflation fell sharply to 0.5% in December, down from 1% in November.

The Office for National Statistics (ONS) has said, reports the BBC.

December’s rate is the joint lowest on record, easing pressure on the Bank of England to raise interest rates.

Many economists had forecast a rate of about 0.7% because of the slide in global oil prices.

The rate of Retail Prices Index (RPI) inflation fell to 1.6% from 2% the previous month, the ONS said.

The ONS said that in addition to falling fuel prices, the drop in inflation was also due to the rises in gas and electricity prices in December 2013 falling out of the equation.

The fall below 1% will trigger a letter of explanation from Bank of England governor Mark Carney to Chancellor George Osborne because it is more than one percentage point away from the Bank’s 2% target.

Paul Hollingsworth of Capital Economics said inflation looked likely to fall further to about 0.2% in February, and that an outright drop in prices was possible.

BDST: 1755 HRS, JAN 13, 2015