Menu
19/06/2012
Inflation Rates Drop To Two-And-A-Year Low
The rate of inflation in the UK fell to a two-and-a-half year low last month, as a result of slowing fuel and food prices.
The Consumer Prices Index (CPI) measure fell to 2.8% in May from 3% in April, the Office for National Statistics (ONS) said.
The Retail Prices Index (RPI) measure fell to 3.1% from 3.5% in March.
Due to the waning impact of the VAT rise in 2011 and falling energy, food and commodity prices inflation has fallen from 5.2% last September.
The fall in inflation was unexpected; as the consensus among economists was that the rate would be unchanged in May. However, analysts are now saying prices were likely to fall further in the coming months.
"Expect further falls in inflation as energy bills rise less over the summer versus last year," said 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)... We expect £50bn with a sizable risk of a 25 basis point rate cut to boot."
Philip Shaw at Investec agreed, saying: "The inflation measures have all come in below market expectations and another drop in the targeted measure helps the case for more quantitative easing."
The May inflation figures show that consumers are starting to benefit from a fall in recent months in the cost of crude oil.
(H)
The Consumer Prices Index (CPI) measure fell to 2.8% in May from 3% in April, the Office for National Statistics (ONS) said.
The Retail Prices Index (RPI) measure fell to 3.1% from 3.5% in March.
Due to the waning impact of the VAT rise in 2011 and falling energy, food and commodity prices inflation has fallen from 5.2% last September.
The fall in inflation was unexpected; as the consensus among economists was that the rate would be unchanged in May. However, analysts are now saying prices were likely to fall further in the coming months.
"Expect further falls in inflation as energy bills rise less over the summer versus last year," said 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)... We expect £50bn with a sizable risk of a 25 basis point rate cut to boot."
Philip Shaw at Investec agreed, saying: "The inflation measures have all come in below market expectations and another drop in the targeted measure helps the case for more quantitative easing."
The May inflation figures show that consumers are starting to benefit from a fall in recent months in the cost of crude oil.
(H)
Related UK National News Stories
Click here for the latest headlines.
12 April 2005
UK house prices fall, report shows
UK house prices fell by 0.5% between January and February, figures from the Office of the Deputy Prime Minister (ODPM) have shown. The drop in prices, which saw the average house price in the UK in February fall to £179,491 from £180,465 in January, is smaller than the 1% fall reported in the same period last year.
UK house prices fall, report shows
UK house prices fell by 0.5% between January and February, figures from the Office of the Deputy Prime Minister (ODPM) have shown. The drop in prices, which saw the average house price in the UK in February fall to £179,491 from £180,465 in January, is smaller than the 1% fall reported in the same period last year.
12 September 2005
House price rise slowdown continues
Annual house price inflation in July was 4%, down from 5% in June according to figures released today by the Deputy Prime Minister's office. This drop in the growth of house prices pushed the annual house price inflation in London down to 0.9% in July 2005, a fall from the from 1.7% figure in June 2005.
House price rise slowdown continues
Annual house price inflation in July was 4%, down from 5% in June according to figures released today by the Deputy Prime Minister's office. This drop in the growth of house prices pushed the annual house price inflation in London down to 0.9% in July 2005, a fall from the from 1.7% figure in June 2005.
22 May 2012
UK Inflation Down To 3%
The UK inflation rate fell last month to its lowest in years, but the Bank of England warned that eurozone troubles would keep prices rising. The Consumer Prices Index (CPI) rate fell 5% to 3% in March, according to the Office for National Statistics (ONS).
UK Inflation Down To 3%
The UK inflation rate fell last month to its lowest in years, but the Bank of England warned that eurozone troubles would keep prices rising. The Consumer Prices Index (CPI) rate fell 5% to 3% in March, according to the Office for National Statistics (ONS).
17 August 2010
Inflation Remains Above Target
The rate of inflation in the UK fell slightly in July, but remains above the government target of 2%, the latest figures have revealed. The Consumer Prices Index, which excludes housing costs, dropped to 3.1% last month, from 3.2% in June.
Inflation Remains Above Target
The rate of inflation in the UK fell slightly in July, but remains above the government target of 2%, the latest figures have revealed. The Consumer Prices Index, which excludes housing costs, dropped to 3.1% last month, from 3.2% in June.
21 April 2009
Inflation Drops Below Zero
The rate of inflation which includes mortgage costs has dropped below zero for the first time since 1960. The inflation measured by the Retail Prices Index (RPI) dropped to -0.4% in March, a further drop from zero in February.
Inflation Drops Below Zero
The rate of inflation which includes mortgage costs has dropped below zero for the first time since 1960. The inflation measured by the Retail Prices Index (RPI) dropped to -0.4% in March, a further drop from zero in February.
-
Northern Ireland WeatherToday:Scattered showers of rain, sleet and, over hills, snow in the morning with sunny spells, the best of these in the south. The showers dying out this afternoon with increasing amounts of sunshine. Occasionally fresh westerly or northwesterly winds easing. Maximum temperature 6 °C.Tonight:Clear start with a fairly widespread frost developing. Increasing cloud brings occasionally heavy rain overnight, preceded, especially over western hills, briefly by snow. Occasional southeasterly gales, severe near coasts, developing. Minimum temperature -2 °C.
