LONDON, Jan 20 (Reuters) - Discounting by clothing retailers and a cut in sales tax caused British consumer price inflation to fall by its biggest margin since April 1992 in December, but by less than analysts had forecast, official data showed on Tuesday.
The headline rate of consumer price inflation slowed to 3.1 percent from 4.1 percent. That was its lowest since April 2008, but still above the Bank of England's 2 percent target.
Analysts had forecast a much sharper drop in the annual rate to 2.7 percent.
The ONS said the government's decision to cut value-added tax with effect from the start of December put downward pressure on prices, as did lower petrol prices and pre-Christmas discounting by stores eager to lure in price-conscious shoppers.