Rare sunlight for coalition as inflation rates fall
By politics.co.uk staff
There was good news for the government today as inflation rates in the UK dropped to their lowest level for two and a half years.
With the price of food and fuel falling substantially, the reduction will relieve family budgets and help improve government popularity following a heavily criticised budget.
The consumer price index (CPI) stood at 2.8% in May, down 0.2% from April. The retail price index (RPI) was at 3.1%, down 0.4% from April.
The results also saved Bank of England governor Mervyn King from having to write a letter of explanation to chancellor George Osborne, a move which is triggered if inflation rates stay above three per cent or below one per cent for more than three months in a row.