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The rate of inflation in the UK fell to 1.8% in January, down from 2.1% in December, according to the Office for National Statistics (ONS).

It is the lowest rate of inflation the UK has seen in two years and takes it below the Bank of England's target of 2%.

The ONS said lower electricity, gas and other fuel prices were the main cause for the drop in inflation. The figure also means that pay in the UK is now growing faster than prices.

Head of Inflation Mike Hardie said: "The fall in inflation is due mainly to cheaper gas, electricity and petrol, partly offset by rising ferry ticket prices and airfares falling more slowly than this time last year."