The 12 month rate of CPI inflation increased by a surprise 0.1% in December to 4% despite experts predicting a fall to 3.8%.

The CPI inflation rate dropped from 4.6% in October to 3.9% in November, continuing a rapid decline seen in recent months.

CPI inflation in the 12 months to October fell to 4.6%, a significant drop on the 6.7% rate in September.

The Consumer Prices Index rate of inflation held steady at 6.7% in September, disappointing some commentators.