UK Inflation Rate Is at 12 Year Low as Price of Oil Falls

Lower fuel prices have pushed the UK's rate of inflation down to a 12-year low, official statistics show.

The Consumer Prices Index inflation measure - which assesses the cost of basic household goods - fell to a rate of 1% in November from 1.3% in October.

The fall is being dubbed an "early Christmas present" for consumers.

But some investors are concerned that it could slow the UK's economy, as people delay purchases, expecting prices to fall even further.

Inflation as measured by the Retail Prices Index fell to a five-year low of 2%, down from 2.3%.

 The Office for National Statistics said falling fuel prices, caused by the decline in global oil prices, have brought the costs of both road and air travel down, with petrol prices down 5.9% in November.

Additionally, food prices fell by 1.7%, helped by supermarket price wars, while recreation and culture prices fell by 0.3%.

Both food and fuel account for a large part of the ONS' inflation calculations.

In the first few months of 2014, UK inflation generally rose, reaching 1.9% in June.

But the recent low rate of inflation means that earnings are finally rising faster than prices, after years of failing to keep up.

The latest report on the rate at which average wages in the UK are growing is due on Wednesday.