Lower utility bills and discounting from struggling retailers are set to pull the rate of inflation down to a 15-month low tomorrow.
The consumer prices index (CPI) is forecast to fall to 3.3pc in February, from 3.6pc in January, as energy cuts by E. ON and Scottish Power came into effect, but experts have warned the cost of living in the months ahead could be stickier than previously thought.
Non-food retailers also continued to slash prices in the month, according to the British Retail Consortium, as they battled to pull in cash-strapped consumers.
The dip in the CPI rate of inflation will continue the downward trend experienced in recent months and matches forecasts by the Bank of England, which predicted that the rise in cost of living would ease throughout 2012.
There is no dip in inflation, prices are still going up. Incomes are still being squeezed.
But thanks to our Orwellian media we get moronic headlines like this saying inflation has fallen to 3.3% which is still 65% above Mystic Mervs 2% inflation target (yes I know it's bad maths doing percentages like this).
Inflation in the UK continued to fall in February, thanks largely to lower gas and electricity bills.
Consumer Prices Index (CPI) inflation fell to 3.4% in February, down from 3.6% in January, according to the Office for National Statistics (ONS).
Edited by interestrateripoff, 20 March 2012 - 11:30 AM.