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UK inflation rate falls but still above target

13 December 2011 Last updated at 14:20 GMT

People and businesses across England have revealed how their budgets have been squeezed by months of higher prices.

The rate of Consumer Prices Index (CPI) inflation fell from 5% to 4.8% in November, but it remains well above the Bank of England's 2% target.

And while food, petrol and energy bills climbed, gross annual earnings in England rose by 1.3%, the ONS said.

The Bank of England expects inflation to "fall sharply" in 2012.

Hugh Pym reports.