Inflation figures show fall
INFLATION resumed its downward path in April with the headline rate hitting 3%.
The fall will come as a relief to the Bank of England after last month’s unexpected rise in CPI inflation to 3.5% cast doubt on its projections.
The significant decline in April will also increase confidence in forecasts that inflation will return to the 2% target level in the coming months.
It also means the Governor will not have to write a 10th consecutive letter to the Chancellor as the rate is now within one percentage point of the target.
Coverage of the inflation figures is brought to readers of TheBusinessDesk.com in association with stockbrokers Redmayne-Bentley.
Phillip Wong, from Redmayne-Bentley, said: “The Bank of England’s target inflation rate of two per cent looks firmly in sight following the latest data from the ONS.
“With CPI coming in at 3%, this represents the lowest level since February 2010, driven by a slowdown in transport cost rises.
“However, Christine Lagarde, head of the IMF, has suggested that the UK should consider an interest rate cut to aid in UK growth which could potentially lead to further sticky inflationary pressures.”
The retail prices index, which includes housing costs, fell from 3.6% to 3.5%.
