Inflation at five-year low in Britain

LONDON, Oct. 13 (UPI) -- The Office for National Statistics said inflation in Britain fell to a five-year low in September, dropping below expectations to 1.1 percent.

The consumer price index hit the lowest rate since September 2004, dropping below the August rate of 1.6 percent, The Times of London reported Tuesday.

Core inflation, which excludes energy and food costs, came in at 1.7 percent, as energy costs plunged 7.3 percent and food costs slipped 0.9 percent.

IHS Global Insight chief economist Howard Archer predicted September's inflation rate would "probably prove the floor in annual consumer price inflation as oil prices fell back very sharply in the final months of 2008 and early 2009."

"Consequently, annual consumer price inflation is likely to rise back above the Bank of England's 2 percent around the turn of the year and it could near 2.5 percent during the first half of 2010," he said.