Inflation Dips For First Time
Inflation dips help millions pay bills. Falling petrol prices and airfares have helped drive inflation down for the first time in more than six months.
The consumer price index of annual inflation dipped to 2.4 per cent last month from 2.8 per cent in March, the Office for National Statistics said.
This will be welcome news to millions of households struggling to pay their bills.
Annual inflation has been above the Government’s target of two per cent for more than three years. In autumn 2011 it hit 5.2 per cent.
With the price of crude oil falling by 6.8 per cent last month, transport costs dropped by 0.6 per cent – their first downward movement since July 2009.
Petrol and diesel prices fell by 2.1p and 3.9p a litre respectively and airfares were 6.4 per cent lower.
However, experts said the dip is likely to be temporary.
Samuel Tombs, of Capital Economics, said: “Inflation looks set to climb again in the coming months as we reach the anniversary of a period of falling petrol prices and deep discounting on the high street. However, the peak, probably in June, could now be closer to three per cent than the 3.5 per cent we had expected. What’s more, underlying price pressures still look subdued.”
The Bank of England has predicted that inflation will peak at 3.1 per cent in the summer.
A Treasury spokesman said: “Inflation is down by more than a half from its peak. As the Governor of the Bank of England indicated last week, the economy is healing.”
“Maybe things are at last on the up” says Greengates Builders Merchants Accrington Lancashire.