Inflation Still High Despite Fall
Published / Last Updated on 15/11/2011
Inflation Still High Despite Fall.
The Consumer Prices Index (CPI) inflation rate dropped to 5% during October. The CPI rate is still well above the Bank of England’s target of 2%. Falls in the price of food, fuel and air transport helped to push the inflation rate lower. The Retail Prices Index (RPI) inflation rate also fell to 5.4%.
According to a Treasury spokesperson, prices continue to be affected by conditions in the global oil and gas markets. Air fares, fell by 6% compared to the previous month. Petrol also fell by 0.5p a litre and food prices were driven down by heavy supermarket discounting and good harvests, according to the Office for National Statistics.
The Bank of England expects the rate of inflation to drop in 2012 as prices fall back and the impact of the government's increase in VAT is no longer felt.