Shock fall in UK inflation to 4%

Consumer prices index is 4% for March, down from February’s 4.4%, on cheaper food and drink costs, said the Office for National Statistics Inflation in the UK fell back last month, confounding City economists but bringing some respite to shoppers and easing the pressure on the Bank of England to raise interest rates soon. The consumer prices index dropped to 4% in March, from February’s 4.4%, the Office for National Statistics reported. The Retail Prices Index, which includes housing costs, dropped to 5.3% from 5.5% the previous month. City analysts had expected CPI to remain unchanged around 4.4%, with some expecting a rise towards 5%. At 4%, though, CPI remains at double the Bank of England’s official target of 2%. The ONS said that food and drink costs had fallen in March, compared with February. While prices in the shops continue to climb, consumers are cutting back. The latest data from the high street showed that retail sales in March suffered their largest monthly fall since 1995 . More to follow… Inflation Economics Interest rates Consumer spending guardian.co.uk

Posted by on April 12, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.