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UK inflation falls to 10.7% as price rises slow

Drop in consumer prices index rate had been forecast but ministers still likely to face pressure to raise pay

The UK inflation rate declined to 10.7% in November as the momentum behind the rising cost of food and energy began to ease amid growing fears of a long recession.

A drop in the consumer prices index (CPI) figure was slight bigger than expected by most City analysts, who forecast the annual rate of price rises would slide to 10.9% last month, from 11.1% in October.

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