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Mortgages bring inflation down to 4%
Inflation fell back slightly in the year to December, on the back of smaller increases in mortgage interest payments compared with a year earlier. Growth in the retail prices index (RPI) was 4.0%, down from November’s 4.3% figure.
Meanwhile, the consumer prices index (CPI) — which excludes housing costs and is the government’s preferred measure — increased by 2.1% for the third month in a row.