UK inflation is finally near target - falls to November 2009 low

Bank of England governor Mark Carney will be having a good morning.

Inflation in the year to November has come in at 2.1 per cent - a fall from 2.2 per cent last month. Analysts had expected consumer price inflation (CPI) to remain unchanged.

That's still above the Bank's two per cent target, but it's a November 2009 low.

The largest contributions to fall came from food and utilities - but this increase doesn't include the recent gas and electricity bill hikes.

Jeremy Cook, chief economist at World First, says that while "lower CPI is good news in the short term, it can only really be justified as encouraging if tomorrow’s wage data starts to increase as well."

But Rob Wood, chief UK economist at Berenberg, sees chancellor George Osborne's moves to shift some green levies off bills as a sign that utilities will "impart less upward pressure over the next few months than they did last year."