Inflation fell in January

David CameronThe Office of National Statistics (ONS) said that inflation in the UK fell to 1.9 percent in January.

But if you measure inflation using the Retail Prices index, it rose to 2.8 percent in January from 2.7 percent in December 2012.

The ONS said that inflation fell because furniture, alcohol and tobacco prices along with recreational goods and services fell. Prime minister David Cameron (pictured) welcomed the news.

In other UK business news, the British Retail Consortium (BRC) called for an overhaul of business rates. The BRC said shops’ business rates should be based on energy use and the creation of jobs.

The BRC described the existing system as outdated and cimbersome.  The UK government plans to release a report later this year to discuss the matter.