UK Inflation Down But Still Over Target
Published / Last Updated on 18/06/2012
UK Inflation Down But Still Over Target.
Figures from the Office for National Statistics show that the UK rate of inflation fell last month to a two-and-a-half year low. The Consumer Prices Index (CPI) measure fell to 2.8% in May from 3% in April and the Retail Prices Index (RPI) measure fell to 3.1% from 3.5% in March.
The fall in inflation was unexpected, as most economists thought the rate would be unchanged in May. However, analysts believe prices were likely to fall further in the coming months.
According to George Buckley at Deutsche Bank, the fall in CPI inflation to 2.8% in May increases the likelihood at the margin of more quantitative easing (QE).