Inflation lowest since Nov 2009
There is good news for the economy after official figures revealed inflation had fallen to a two-and-a-half-year low. The Consumer Prices Index measure of inflation fell to 2.8% in May, from 3% in April.
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UK inflation expected to stay at 3%
Latest inflation figures are expected to show no immediate end to the squeeze on consumer spending. The rate for May is expected to remain at 3%.
A fall in inflation would increase the case for the Bank of England to pump more emergency cash into the economy as the eurozone crisis escalates and threatens to destabilise the UK economy.