UK annual inflation dips

Britain's 12-month inflation rate slowed to 2.2 percent in October, the lowest level for more than a year, compared with 2.7 percent in September, official data showed on Tuesday. The rate was pulled lower by falling transport costs and a smaller contribution from university tuition fees, the Office for National Statistics (ONS) said in a statement. The October rate was the lowest level since September 2012 and compared with market expectations for a drop to 2.5 percent, according to analysts polled by Dow Jones Newswires. "The Consumer Prices Index (CPI) grew by 2.2 percent in the year to October 2013, down from 2.7 percent in September," the ONS said. "The largest contributions to the fall in the rate came from the transport (notably motor fuels) and education (tuition fees) sectors." On a month-on-month basis, the CPI added just 0.1 percent in October. Analysts had forecast a gain of 0.4 percent. The Bank of England's main task is to use monetary policy as a tool to keep annual inflation close to a government-set target of 2.0 percent, in order to preserve the value of money. However, the annual CPI rate has held above this target level since November 2009. Britain is a member of the European Union but not of the eurozone, and therefore it retains control over monetary policy.