UK inflation has dropped below the Bank of England’s target of two percent for the first time in two years.

Consumer price inflation fell to an annual rate of 1.8 percent in January, down from 2.1 percent in December 2018. Economists had expected a smaller drop to 1.9 percent.

This was largely attributed to lower energy costs with “prices falling between December and January compared with rising prices a year ago,” says Ben Brettell, senior economist, Hargreaves Lansdown.

Guy Foster, head of research at Brewin Dolphin, explained that this is not a cause for concern as “services inflation is still runni...