Inflation has fallen to 1.8%, below the Bank of England’s target 2% for the first time in two years

The biggest driver of lower inflation, was lower gas and electricity prices which fell between December 2018 and January 2019 by 8.5% and 4.9% respectively.

However, this is likely to change as new prices announced already by two energy providers come into effect in response to Ofgem introducing a new price cap.

For the time being, living standards are now higher than for two years as wages rise by 3.3%.

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