18
Nov
Inflation in major fall
The consumer prices index (CPI) rate of inflation has fallen from
5.2 per cent to 4.5 per cent, it has been revealed.
Data from the Office for National Statistics (ONS) for October
showed that the drop had been prompted by a reversal of price
trends for fuel and food, with petrol and meats such as pork and
beef becoming cheaper.
The drop of 0.7 per cent was more than experts predicted and a
continuation of such a trend could further increase the chance of
more base rate cuts, which could help to reduce the cost of
mortgages.
In its quarterly inflation report last week the Bank of England
said CPI would drop "sharply" in the months ahead.
The monetary policy committee may make a change to the base rate if
it feels inflation is on course to drop below the one per cent
floor of the permitted variation from the CPI target.
