Today's inflation figure follows a sharp drop

If the inflation figure remains unchanged today it would follow a sharp drop in April:

  • In April CPI [Consumer Price Index] fell to 3% from 3.5% in March
  • That's the lowest level since February 2010
  • Inflation has fallen from 5.2% last September
  • Previous falls are due to the reduced impact of the VAT rise in 2011
  • Also falling energy and food prices and bill cuts from utility providers


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.