UK inflation rate of 1.2% is lowest in five years

UK inflation fell to a five year low of 1.2% in September from 1.5% the month before, official figures show.

The rate – measured by the Consumer Prices Index is the lowest since September 2009, when it was 1.1%.

Lower energy and food prices helped to cut the rate, while the Office for National Statistics (ONS) also cited cheaper transport costs as a factor.

The news sent the pound lower as analysts said a rate rise was now not likely until well into next year.

The Retail Prices Index measure of inflation fell to 2.3% from 2.4% in August.