British inflation rate falls to 2%

Britain's consumer prices index (CPI), a main gauge of inflation, fell to the government-set target of 2 percent in December 2013, according to figures released by the Office for National Statistics (ONS) on Tuesday. The CPI grew by 2 percent in the year to December 2013, down from 2.1 percent in November, the ONS said. This is the first time the CPI has met the target set by the Bank of England, Britain's central bank, since late 2009. The ONS attributed the fall to smaller increases in food and non-alcoholic beverages, and recreational goods and services. The CPI fall in December confirms the British economy is enjoying a favorable mix of strong growth and low inflation, and means the central bank has reached its target earlier than its prediction of early 2014.