UK Inflation Falls
The BBC News Channel gladly reported today that the United Kingdom’s Inflation fell faster than expected in the month of May. The fall was apparently helped by lower food prices and slower rises in the prices of petrol and alcohol.
The Consumer Price Index (CPI) dropped to 3.4% from 3.7% in April according to the Office for National Statistics.
Howard Archer, an analyst at IHS Global Insight, said: “May’s retreat in CPI will be of some relief to the Bank of England and boosts its case that inflation will head down significantly over the coming months.”
The CPI fall also eases pressure on the need to raise interest rates.