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Inflation falls to three year low as energy prices fall

Official data shows UK consumer prices rose 1.5% as a new price cap kept a lid on energy prices.

Bank of England governor Mark Carney says the UK's low inflation is temporary and will return to its 2% target within two years.

The sharp fall in the UK rate of inflation should not be feared, chancellor George Osborne will say in a speech later.

Inflation in China eased to a five-year low in November, showing ongoing weakness in the Asian giant.

The eurozone inflation rate falls to 0.3% in August, near a five-year low, adding to fears of a deflationary spiral in the region.

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