Mark Carney, Governor of the Bank of England
Media playback is unsupported on your device
Video

Bank of England Mark Carney governor cautious on inflation rate

The inflation rate dropped sharply last month, to 0.5%, the joint lowest level on record. Tumbling oil and energy costs were the main factors.

The fall in the Consumer Prices Index will trigger a letter of explanation from the Governor of the Bank of England, Mark Carney, to the Chancellor about why inflation has undershot its target of 2 per cent.

Mr Carney told the BBC's Economics Editor Robert Peston the news will be welcome to most people.

  • 13 Jan 2015
Go to next video: Inflation rate joint lowest on record