UK inflation rate at 12-year low of 1% as fuel costs fall

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 covers the cost of basic household goods - fell to a rate of 1% in November from 1.3% in October.

If inflation falls below 1% the Bank of England would have to write a letter of explanation to the chancellor.

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