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Britain and Italy see inflation slow

Britain and Italy see inflation slow
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Annual inflation in Britain slipped to 2.0 percent in December.

That is the Bank of England’s target level and it is the first time in over four years that consumer price increases have been that low.

It means the UK central bank is under less pressure to put up interest rates, which it would have to consider if the cost of living was rising steeply.

Britain’s Office for National Statistics said the fall was due to smaller increases in the cost of food.

Wages have not been going up as fast, eroding Briton’s spending power and pulling down living standards.

Meanwhile the weakness of Italy’s economy is evident in its latest inflation figures.

With people spending less, last year consumer prices rose 1.2 percent, the lowest in four years and a marked slowdown from the 3.0 percent increase for 2012.

Italy’s economy has been hit by austerity, tax rises and job losses.

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