UK inflation rate: 'Good news in the short term'

The UK inflation rate fell sharply to 0.5% in December, the joint lowest on record, official figures show.

Bank of England governor Mark Carney told the BBC that low inflation could mean lower interest rates for longer.

He said this would no doubt be "good news for British households", but warned the issue was to make sure this situation did not become more generalised.

Robert Peston reports.

BBC News