The level of UK inflation has dropped again, official statistics have revealed.
Consumer prices index (CPI) inflation dipped from 3.1 per cent in December to three per cent in January, with the main causes listed as being lower household and motoring costs.
The fall was less than the 0.4 per cent expected by analysts, with the Office for National Statistics stating that heavier than normal discounting in December meant the reduction in prices for the January sales was less this year than in 2008.
Such a factor may be a temporary restraint on the continuing decline in CPI, something the Bank of England's monetary policy committee (MPC) may take into account when it next meets to set the base rate.
Should the MPC decide a further cut is still warranted, this may help lower the cost of mortgages.
Earlier this week MPC member Charles Bean told a meeting in Birmingham he expected the MPC will "probably" have to act on interest rates again.
See Also: Property News (6705)
Date Published: 17 February 2009
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