Britainís inflation rate dropped to a four year low of 2% in December, down 0.1% from November.
The Consumer Price Index, which provides estimations of the total move in inflation during individual months, found that the UKís inflation rate had fallen to 2% for the first time since 2009, meeting the government aim of bringing inflation below this mark.
The Retail Price Index however has measured inflation to be at 2.8% in the month of December, up by 0.1% from the month before.
The Office for National Statistics has identified that a particularly slow rise in the cost of food in December was the reason behind the inflation drop.
According to the data giants, food and non-alcoholic products had risen by the lowest amount in a month since back in 2006, and had as such positively impacted the inflation rate in the country during December.
Economists have also argued that price reductions by leading supermarkets over the Christmas period contributed to the decline in inflation, with video game and children item costs decreasing at a higher rate than back in 2012.
However, the ONS highlighted that the decline in inflation would have been steeper had it not been for a severe increase in energy and fuel prices during December.
The results of the study were released before Tesco announced reductions in their petrol prices, which will undoubtedly have an effect on inflationary statistics next month. .
The news of the UKís inflation rate falling to 2% was met with a positive reaction by Prime Minister David Cameron, who identified this value as a government goal to achieve when he first ascended to the countryís leadership.
“It’s welcome news that inflation is down and on target. As the economy grows and jobs are created this means more security for hard-working people,” he said.
Labour have also welcomed the news, but have voiced their concern about the ongoing stagnation in peopleís wages, which has contributed severely to the current ëcost of living crisisí that grips the country.
Labour’s Treasury spokeswoman Catherine McKinnell also welcomed said: “With prices still rising more than twice as fast as wages, the cost-living crisis continues.”
Leading economists have stated that they believe the drop will lower the number of calls for a premature interest rise on the Bank of England and should see a slow improvement in the standard of living this year.
Jeremy Cook, chief economist at World First, said: “The lack of inflation will help stay their hand especially if the pace of job creation seen in the second half of last year also slows.”
Chris Williamson, chief economist at Markit, forecasted that despite the consistent falls in inflation during recent times, that it would likely remain at this point for a ëconsiderableí period from now on.
“The easing in price pressures is a welcome relief to policy makers at the Bank of England and helps keep the spectre of higher interest rates at bay,” he added.