A sharp fall in inflation was shown in April which has allowed the Bank of England’s benchmark, the Consumer Prices Index to fall back to 3.1% from 3.5% in March.
This will help the Bank’s continuing battle to stop the rise in the cost of living.
The fall still leaves the cost of living well above the Bank’s target of 2%. This level has stuck since 2009 mainly due to VAT hikes and rising global commodity prices.
They warn that inflation is unlikely to drop back to their target until the middle of next year.
They reason for the current drop is most likely because of welcome price cuts from the energy companies. Easter coming early has helped sales periods along with cheaper air fares says Lloyds Bank senior UK economist David Page.
It is difficult to predict inflation lower than 3% throughout the summer.
The reducing oil prices should eventually lead to lower petrol prices although the effect of this in respect of inflation may not be felt until next month.
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