The rate of inflation fell to 1.2% in the year to September, down from 1.5% in August. The Office for National Statistics suggests that supermarket competition, the impact of a strong pound on the prices of imported goods, and falls in crude oil and petrol prices could be factors in the fall in the rate of the Consumer Price Index. The Government’s target rate for inflation is 2% - inflation below the target of 2% is judged to be just as bad as inflation above the target.The figures suggest a rise in interest rates in the UK is unlikely in the short term.
