Tuesday, April 12, 2011
The UK Consumer Prices Index annual rate of inflation has fallen to 4 per cent, down from 4.4 per cent in February. The Office for National Statistics said that food and drink costs had fallen in March, compared with February. Retail Prices Index inflation also fell to 5.3 per cent from 5.5 per cent in February.In February, Bank of England governor Mervyn King said inflation was likely to remain well above target for this year, before falling back in 2012, based on bank rate increases â€œin line with market expectationsâ€.He said: â€œAlthough one cannot be sure, prices excluding the effects of these factors would probably have increased at a rate well below the 2 per cent inflation target. â€œInflation is likely to continue to pick up to somewhere between 4 per cent and 5 per cent over.