FXstreet.com (Barcelona) - Inflation at consumer level is going through a fast easing pace, since oil prices started to plummet worldwide, and the VAT rate was lowered. although the year on year CPI still remains over the 2.0% upper band of the BoE's range for price stability.

Consumer prices have grown at a 3.1% year on year pace in December, down from the 4.1% growing pace posted in November. The 1.0% difference on yearly inflation between November and December is the largest decline since series began in 1997.

Month on month inflation has dropped 0.4% in the third consecutive monthly decline.

Excluding food and energy, the Core CPI grew at a 1.1% year on year rate, down from 2.0% in November, while month on month, the Core CPI dropped 0.3% from November to December.

The Retail Prices Index has risen 0.9% year on year in December, down from the 3.0% yearly rise posted in November. Month on month, retail prices index have dropped 1.4% after a 0.8% decline in November.